Why Is Bitcoin Price Down Today? 3 Key Reasons
March 15 2024 - 4:20AM
NEWSBTC
Today’s Bitcoin price movement is a confluence of factors including
massive liquidations, macroeconomic pressures, and the impact of
negative Coinbase Premium alongside Bitcoin ETF dynamics. These
elements combined have led to a noticeable dip in Bitcoin’s price.
#1 Long Liquidations Today’s Bitcoin market saw a significant price
drop, initiated by a sweeping liquidation event on the futures
market. Over the last 24 hours, crypto trader liquidations exceeded
$682.54 million across more than 191,000 traders, according to
Coinglass data. This surge in liquidations resulted in Bitcoin’s
price plummeting by 8% in mere hours, falling from $72,000 to
$66,500. Although there was a minor recovery, with Bitcoin’s price
rebounding to the $68,000 level, it currently stands nearly 10%
below its March 14 all-time high of $73,737. Related Reading:
Crypto Market’s ‘Monster Cycle’: $7.5 Trillion Market Value By
2025, Bitcoin Targets $150,000 A notable 80% of these liquidations
were long positions, contributing to $544.99 million of the total.
Short position liquidations made up the remaining $136.94 million,
with Bitcoin longs alone accounting for $242.37 million in
liquidations. #2 Macro Conditions Weighing On Bitcoin Price The
macroeconomic landscape has placed additional pressure on Bitcoin’s
value. Ted, a macro analyst known as @tedtalksmacro, highlighted on
X the influence of macro conditions on the cryptocurrency market.
He stated, “If BTC is digital gold, expect it to trade in lockstep
with gold, however, with higher beta.” With the Federal Reserve’s
meeting looming next week, macroeconomic factors are expected to
take center stage temporarily. Yesterday’s US Producer Price Index
(PPI) data, showing a 0.6% increase in February and surpassing
forecasts of 0.3 month-over-month, has caused a ripple effect with
CPI recently also hotter than expected, leading to a rise in US
bond yields. The benchmark 10-year rate saw an increase of 10 basis
points to 4.29%, while two-year rates rose to 4.69% from 4.63%.
These developments have led traders to adjust their expectations
for the Federal Reserve’s interest rate policies in 2024. Related
Reading: Brace For Impact: MicroStrategy Is Planning Another $500
Million Bitcoin Purchase Mohamed A. El-Erian, from Queens’ College,
Cambridge University, Allianz, and Gramercy, remarked on the
situation: “US government bond yields jumped today in reaction to
yet another (slightly) hotter-than-expected inflation print (this
time PPI).” This suggests a growing awareness of the challenges
that persistent inflation poses to achieving the Fed’s 2% inflation
target. #3 Negative Coinbase Premium / Quiet Bitcoin ETF Day The
decline of Bitcoin below the $70,000 threshold is also attributed
to the “Coinbase Premium” – the exchange which custodies the
majority of all spot Bitcoin ETFs – dipping into negative territory
for the first time since February 26, indicating a bearish
sentiment from US markets. This phenomenon is likely a consequence
of significant sales of Grayscale GBTC, while the spot ETF
experienced relatively calm activity. Following a record $1 billion
net inflow day for the spot ETF on March 12, inflows dropped to
just $132.7 million recently, with Blackrock contributing the
lion’s share at $345.4 million. Meanwhile, Fidelity and ARK saw
minimal inflows of $13.7 million and $3.5 million respectively,
after a previously strong week. GBTC outflows were reported at
$257.1 million, aligning with average levels. Crypto analyst
WhalePanda commented on the situation, noting that despite the
reduced inflow, “$132.7 million is still 2 full days of mining
rewards.” He suggests a potential rebound in the market, stating,
“We’re just ranging now and overleveraged people getting margin
called. I guess the next move up is for next week.” At press time,
BTC traded at $67,916. Featured image created with DALL·E, chart
from TradingView.com
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