Bitcoin

Whether it’s Elon Musk, Evergrande, or an entirely different factor, analysts provide insights into the causes of Bitcoin’s sudden drop and offer predictions for what lies ahead.After a period of relative stability lasting several weeks, Bitcoin faced a swift descent yesterday, plummeting to levels not witnessed in the past two months.<a href="https://www.coingecko.com/en/coins/bitcoin" rel="noopener noreferrer nofollow">As per data</a> from CoinGecko, the leading cryptocurrency by market capitalization was trading at $26,060 per coin at the time of this writing, marking an over 11% decrease over the previous seven days.While it has rebounded from its Thursday low of $25,649, it remains notably below the peaks above $31,000 it reached back in June.So, what instigated this abrupt flash crash following a period of low volatility between mid-June and August?Experts informed Decrypt that a considerable part of the explanation stems from broader economic factors, encompassing American regulations, hesitations among institutional investors, and insufficient liquidity.According to data provider <a href="https://twitter.com/KaikoData/status/1692446239525056581" rel="noopener noreferrer nofollow">Kaiko</a>, liquidity within the Bitcoin market has been diminishing over time on major exchanges like Binance and Coinbase. This implies that when significant holders decide to alter their positions, the impact resonates throughout the market. And resonate it did: at one juncture yesterday, Bitcoin shed 7% of its value in a mere 20 minutes.“We don’t possess knowledge about the entity that offloaded Bitcoin and set off this chain reaction of liquidation. However, it’s improbable that original miners or U.S. investors were behind it,” remarked Ki Young Ju, CEO of CryptoQuant.The “chain reaction of liquidation,” amounting to over $1 billion, was prompted by anxious investors—some of the substantial influence—seeking to mitigate risk following the news that China’s Evergrande Group real estate developer had filed for Chapter 15 bankruptcy safeguard in New York.Bob Bodily, CEO of Bioniq’s Ordinals marketplace, noted that the turbulence within massive property developers and the real estate sector could spill over into other facets of the economy.He also pointed out that a period of “market illiquidity and price stagnation” played a role in the flash crash. Meanwhile, he categorized a<a href="https://www.wsj.com/tech/behind-the-curtain-of-elon-musks-secretive-spacex-revenue-growth-and-rising-costs-2c828e2b" rel="noopener noreferrer nofollow"> report from The Wall Street Journal</a> indicating that Elon Musk’s SpaceX had marked down the value of its<a href="https://cryptosnewss.com/could-580m-worth-of-bitcoin-options-expiring-reverse-the-markets-direction/" rel="noopener noreferrer nofollow"> Bitcoin holdings</a> as a rumor. However, this rumor quickly gained traction among the masses and potentially contributed to the price dip.<blockquote>The post <a href="https://cryptosnewss.com/bitcoin-experiences-sharp-decline-again-reasons-behind-it-and-future-outlook/" rel="noopener noreferrer nofollow">Bitcoin Experiences Sharp Decline Again—Reasons Behind It and Future Outlook</a> appeared first on CryptosNewss.</blockquote>

Bitcoin Experiences Sharp Decline Again—Reasons Behind It and Future Outlook

Cryptos Newss

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