Within approximately 1 hour, the BTC price dropped more than 6%, triggering panic sales in altcoins. The sales accelerated after the US market opened and increased significantly after the market closed. The Bitcoin price, which fell to $58,000, was triggered by the failure of the last $65,000 test. So, what is happening?
Why Are Cryptocurrencies Dropping?
In evaluations over the last 24 hours, we mentioned that the BTC price could dip to $61,700 and below. The expected scenario happened, but no one expected it to be this fast. The failure of the $65,000 test and the continuation of Binance-centered sales, as we have been expressing for hours, panicked investors. With the loss of the $61,700 support, the decline was expected to gain momentum at the latest by the opening of the Asian markets.
And so it did. Investors, thinking that one of the recurring movements of recent months was happening again, started selling as stop levels were violated. This could also be insider pricing of bad news coming soon.
In the last 4 hours, $189 million worth of long positions were liquidated. Investors, who had convinced themselves that the rise attempt would fail and reverse quickly like previous attempts, were right once again and reaped their rewards. The PCE data is the most important development of this week and is key on Friday. However, even if things go well on the macroeconomic front, while the DXY has fallen to the 100 base (52-week low), cryptocurrencies are negatively diverging within risk markets. We will see if there is a specific reason for this.
In the ETF channel, BTC saw an outflow of $18.3 million and BITB $6.8 million for now. We might experience the first net outflow day since August 15.
