Altcoins
Why is the price of Bitcoin (BTC) decreasing? Cryptocurrency settlement exceeds $93 million
The price of Bitcoin (BTC) is experiencing very intense pressure, a trend that is dragging altcoins towards new lows. With the drawdown, the price of Bitcoin changes hands at $69,670.58, down 0.28% in 24 hours. This slight slide has created a deep collapse in other altcoins, especially memecoins Floki.
Bitcoin withdrawal triggers intense liquidation
As Bitcoin’s price plummeted, Ethereum (ETH) fell 1.20% to $3,670.56, Binance Coin (BNB), which recently made a new all-time high (ATH), fell 7.45 % at $622.28. Other major altcoins such as Solana (SOL) and XRP also fell by 1.53% and 0.53% to $159.45 and $0.4960.
Since most altcoins are related to Bitcoin, Toncoin (TON) showed an exception. The Telegram-backed digital currency managed to maintain its 1.28% surge to $7.176.
Of these BTC and altcoin trends, the combined liquidation of the cryptocurrency market exceeded $93.68 million. In total, 51,090 traders were involved in this liquidation in 24 hours. Bitcoin is leading this liquidation trend with over $14.59 million drained. Ethereum and Solana rank second and third, with settlements exceeding $12.3 million and $4.2 million, respectively.
Cryptocurrency market liquidations are nothing new in the market as traders continue to hedge their bets through leveraged trading. Unlike what was observed in the market before this period, the combined market liquidation is growing, leaving experts to wonder what the main reason for the market reaction could be.
For what it’s worth, Bitcoin has the right incentives to grow. The US Federal Reserve is set for a two-day policy meeting that could see a rate cut announced. Other G7 central banks, including the Bank of Canada
and the European Central Bank (ECB) announced similar rate cuts last week.
Bitcoin’s rebound is imminent
These rate cuts by G7 central banks are important growth drivers for risky assets, especially Bitcoin. With lower rates in crucial financial markets, the digital currency could be more attractive to institutional investors.
The gateway for this class of investors to embrace BTC has been created Spot Bitcoin ETF offers. From the US to the UK, to Australia, Hong Kong and Thailand, more and more nations are supporting the growth of the nascent asset.
Overall, Bitcoin’s rebound is imminent if market indices and BTC spot ETF accumulation continues.
To know more: Floki Name Service Goes Live, Will It Trigger a FLOKI Price Rebound?