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The post <a href="https://coinpedia.org/news/top-reasons-why-bitcoin-btc-price-crashed-10-today/">Top Reasons Why Bitcoin (BTC) Price Crashed 10% Today?</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a> 
<a href="https://markets.coinpedia.org/bitcoin/" target="_blank" rel="noreferrer noopener">Bitcoin</a> experienced a tumultuous ride in Tuesday’s market, hitting a new all-time high of $69,324 before witnessing a significant plunge. This rollercoaster journey raises questions about market dynamics, investor behaviour, and the impact of external factors on the cryptocurrency landscape. 
<h2 class="wp-block-heading" id="h-bitcoin-s-meteoric-rise-and-the-sudden-plunge">Bitcoin’s Meteoric Rise and the Sudden Plunge</h2> 
<a href="https://coinpedia.org/price-prediction/bitcoin-price-prediction/" target="_blank" rel="noreferrer noopener">Bitcoin’s price surge</a>, fueled by the market inflows ever since the approval of <a href="https://markets.coinpedia.org/bitcoin-etf/" target="_blank" rel="noreferrer noopener">Bitcoin ETFs</a> in January, catapulted it past its previous all-time high in November 2021.&nbsp; 
Bitcoin’s remarkable rally in 2024, up approximately 63%, has been attributed to robust demand for new U.S. ETFs and anticipation of a slowdown in the token’s supply growth. The approval of spot ETFs from major investment firms like BlackRock Inc. and Fidelity Investments contributed to nearly $8 billion in net inflows in less than two months. 
The approval of BlackRock’s ETF (IBIT) in January 2024, swiftly accumulating over $10 billion in assets, aligns with Bitcoin’s doubling in value since the filing.&nbsp; 
Bitcoin crossed its previous ATH of $69K and reached $69,324 before plummeting 12% to just above $60,000 in five hours. At the time of writing, the current price of Bitcoin overs around $63,836. 
Market analysts had already anticipated this level of volatility, considering Bitcoin’s historical price movements during previous bull markets.&nbsp; 
<blockquote class="wp-block-quote"> 
 Alex Thorn, Head of Research at Galaxy, remarked, “This is likely the beginning of a lot of volatility as we go up,” emphasizing that bull markets often involve significant corrections. Thorn took reference from the 2017 market, where multiple corrections of 25% or more occurred on the way to the previous all-time high of $20,000. 
</blockquote> 
Thorn further marked the importance of understanding that bull markets are not linear and pointed to similar price fluctuations during the COVID-19 pandemic in 2020-2021. He suggested that some consolidation might be healthy after the substantial year-to-date gains. 
Also Read: <a href="https://coinpedia.org/price-analysis/bitcoin-price-finally-reaches-new-all-time-high-breaking-69000-is-btc-aiming-for-100k-next/">Bitcoin Price Finally Reaches New All-Time High, Breaking $69,000! Is BTC Aiming For $100K Next?</a> 
<h2 class="wp-block-heading" id="h-profit-taking-amidst-record-highs">Profit-Taking Amidst Record Highs</h2> 
The surge in Bitcoin’s price to record levels triggered a significant number of traders to capitalize on profits. 
<blockquote class="wp-block-quote"> 
 Zaheer Ebtikar, founder of crypto fund Split Capital, noted, “Given that almost everyone who has ever bought Bitcoin has now made a profit, there is a good chance that we will see some profit-taking.” 
</blockquote> 
<blockquote class="wp-block-quote"> 
 <a href="https://x.com/HsakaTrades/status/1765071554327818575?s=20">Hsaka</a>, a prominent Bitcoin trader, weighed in on X – “Bitcoin is NOT naturally going down. It is being pushed down via whales placing spoofy sell orders on exchanges to make noobs and risk managers sell to ‘buy back lower.” 
</blockquote> 
Bitcoin’s recovery from the 2022 lows has transformed the industry, with the total market value reaching approximately $2.6 trillion. Despite scepticism from traditional finance personalities, such as Jamie Dimon and Charlie Munger, Bitcoin continues to garner attention from major financial institutions.

Top Reasons Why Bitcoin (BTC) Price Crashed 10% Today?

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