Cryptocurrency investors are facing another frustrating day as BTC sets a 24-hour low at $65,800. Losses could deepen as Asian investors wake up to such sell-offs, which could lead to even greater losses in the coming hours. So, what’s causing this drop? Should investors be worried?
Why Is Bitcoin Falling?
The king cryptocurrency fell to $65,804 about an hour and a half after the daily close. Although it struggled to surpass $68,000 at the daily close, bulls faced sell-offs from overly profitable investors. This situation also triggered abnormal prices in the last few hours. For example, 3 hours ago on the BitMex exchange, 400 BTC were sold within 2 hours. With a price drop exceeding 50%, BTC momentarily spiked down to $38,200 in the USDT pair.
The investor who triggered this drop nearly lost $4 million. Additionally, $257 million worth of long positions were liquidated in the last 24 hours. The most significant event increasing anxiety for Bitcoin is the upcoming Federal Reserve meeting on Wednesday. The latest inflation data was also disappointing, and with the Fed members’ 2-year interest rate forecasts to be announced, we could see upward revisions putting more pressure on the markets.
Bitcoin is at a critical region, as previously mentioned, at $65,830, and a loss here could lead to a gradual decline down to $59,000. As of writing, the price has breached the 20-day EMA and started to recover, but a downward break could be seen in the coming hours. Some altcoins (for example, CHZ, SHIB, DOGE) are nearing 10% losses.
