Bitcoin Price Tumbles Below $66,000: 4 Major Reasons
The Bitcoin market has witnessed a significant downturn, with prices plummeting below the $66,000 mark.
This abrupt -5.6% price movement can be attributed to four major factors: a long liquidation event, a rising US Dollar Index (DXY), profit-taking by investors, and spot Bitcoin ETF outflows.
#1 Long Liquidations The main force leading to today’s downturn in Bitcoin’s price was a significant deleveraging event characterized by an unusually high level of long liquidations.
Before the downturn, Bitcoin’s Open Interest (OI) Weighted Funding Rate was unusually high, indicating that leveraged traders were paying premiums to maintain long positions in anticipation of future price increases.
This optimism, however, made the market vulnerable to sudden corrections.
Related Reading: Hedge Fund Manager Predicts When Bitcoin Price Will Reach $150,000 Crypto analyst Ted, known as @tedtalksmacro on X (formerly Twitter), remarked, “Today was the largest long liquidation event since the 19th March.” He further elaborated on the effects of this correction by noting, “Nice reset in overall positioning today, even on just a 5% drop lower for Bitcoin…