Binance। Why Did Bitcoin Dump Today?। Crypto News

 

Binance। Why Did Bitcoin Dump Today?। Crypto News

Bitcoin dropped below $61,000 today, causing over $260 million in long liquidations. Here's what caused the decline:

1) Rising Unemployment Rate

- Unemployment Rate Increase: The US unemployment rate rose to 4.3% yesterday, higher than expected.

- Economic Concerns: Higher unemployment suggests potential recession, impacting both the stock market and cryptocurrency.

2) Strengthening Japanese Yen

- BOJ Interest Rate Hike: The Bank of Japan raised interest rates for the first time in 17 years.

- Investment Shift: Investors are pulling funds from US equities and other risk-on assets due to increased borrowing costs in Yen.

3) WWIII Fears

- Geopolitical Uncertainty: For the fifth time in 2024, fears of World War III have resurfaced.

- Risk Aversion: During uncertain times, investors avoid risk-on assets, contributing to the dump.

4) Mt. Gox and Genesis Distribution

- BTC Distribution: Mt. Gox BTC distribution is nearing its end, and Genesis has started distributing.

- Market Reaction: $1 billion worth of BTC was moved yesterday, signaling potential dumping to the market.

My Opinion:

These events may push the Fed to act quickly, potentially leading to rate cuts. Once the fear subsides, the market could rebound, and we might see a parabolic run. The market just needs a few months to turn around. 

Hold on tight! 🚀