- Bitcoin price experienced a 2.54% decline, reaching $30,350 in 24h from a high of $31.7K.
- Caution is advised in the Crypto market amidst uncertainties and funding rate disparities.
Bitcoin, the leading cryptocurrency, has experienced significant price volatility, declining by 2.81% to reach $30,350. This sudden BTC price drop in value comes as a surprise to many investors and traders, especially considering the recent positive momentum in the market.
The price surge earlier was driven by the optimism generated from the near-conclusion of the legal battle between the SEC and Ripple. It led to a substantial surge in Bitcoin which hit ATH of $31.7K this year yesterday. However, seeing altcoins breaking the bullish rally and bitcoin price dump makes the investors go off guard.
What’s Behind the Bitcoin(BTC) Price Dump?
Several factors have contributed to this downturn. Firstly, Binance, a major cryptocurrency exchange, announced the layoff of over 1,000 employees. This news has created uncertainty and affected market sentiment, potentially influencing trading patterns.
Additionally, concerns have arisen regarding the transfer of over 9,000 Bitcoins by the US Government to an unidentified wallet. Speculation suggests that these BTCs may have been sold during the recent price surge, which could have exerted downward pressure on Bitcoin price.
Another noteworthy aspect is the discrepancy in funding rates among different exchanges. Although the volume-weighted funding rate for it remains favorable at 0.0079%, exchanges with higher financing rates have experienced reduced trading activity and liquidity for futures contracts. This divergence in funding rates indicates a potential decrease in overall trading activity, which might be impacting Bitcoin price dump.
In summary, the recent decline in Bitcoin’s price stems from factors including Binance‘s layoffs, a substantial Bitcoin transfer by the US Government, and disparities in funding rates among exchanges. This has left investors in a state of caution due to the heightened volatility in the cryptocurrency market.
What do you think could be the reason behind The Bitcoin Dump? Tweet us @The_NewsCrypto and let us know your thoughts.
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