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<p>The post <a href="https://coinpedia.org/news/top-3-reasons-why-bitcoin-btc-price-dropped-below-66k/">Top 3 Reasons Why Bitcoin (BTC) Price Dropped Below $66K</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>The recent flash crash of Bitcoin and its enormous liquidations has shocked many investors, prompting questions about the underlying causes. So what are the reasons for the sudden downturn?&nbsp;</p> 
<p>Below are the three key factors that are the driving force behind Bitcoin’s price dropping by over 5%.&nbsp;</p> 
<h2 class="wp-block-heading" id="h-high-funding-and-open-interest"><strong>High Funding and Open Interest</strong></h2> 
<p>The first thing is funding and open interest levels in the Bitcoin ecosystem. When the financing metrics and open interest are high, it indicates a proliferation of leveraged positions, which leaves Bitcoin vulnerable to price manipulation.&nbsp;Whales or large holders of Bitcoin might take advantage of this situation to trigger a price drop by selling off their holdings. </p> 
<p>Whale action has subsequently led to Bitcoin’s entire network witnessing a total liquidation of $157 million in the past hour alone, with long orders totaling $144 million.</p> 
<h2 class="wp-block-heading" id="h-grayscale-outflow"><strong>Grayscale Outflow</strong></h2> 
<p>The second reason is the Grayscale Bitcoin Trust (GBTC) outflows. GBTC, a popular investment vehicle for institutional investors to invest in Bitcoin ETFs, has decreased in demand.&nbsp;These massive GBTC outflows might contribute to a drop in Bitcoin’s price, now trading at around $66,608. Ethereum has also experienced a notable decline, briefly falling to $3,319 before stabilizing. The sharp decline in prices resulted in widespread liquidations across the crypto market.&nbsp;</p> 
<h2 class="wp-block-heading" id="h-historical-precedent"><strong>Historical Precedent</strong></h2> 
<p>Thirdly, Bitcoin’s historical patterns, particularly its tendency to experience price corrections before halving events.&nbsp;Bitcoin’s halving, which occurs approximately every four years, is due this month, on April 18th!&nbsp;</p> 
<p>The recent drop in Bitcoin’s price combines three factors: high leverage in the market, institutional outflows, and historical patterns related to halving events.&nbsp;</p>

Top 3 Reasons Why Bitcoin (BTC) Price Dropped Below $66K

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