Why is Bitcoin (BTC) Price Down?
Bitcoin is the dominant force in the cryptocurrency world, well-known to investors. It recently hit a record high of $73,750 on March 14, 2024. However, BTC has been experiencing corrections in its price recently.
How has the Bitcoin Price Moved Recently?
The current price of Bitcoin is $61,258, with a 24-hour trading volume of $82.87 billion. Bitcoin's market cap stands at $1.21 trillion, and its market dominance is at 52.77%. Over the past 24 hours, the price of BTC increased by 0.13%.
Bitcoin achieved its all-time high price of $73,628 on March 14, 2024. Its lowest recorded price was $0.050000 on July 17, 2010, during its early days. Since reaching its all-time high, Bitcoin's lowest price was $56,721 (cycle low), and its highest price was $65,425 (cycle high). Currently, the sentiment for Bitcoin price prediction is bearish, and the Fear & Greed Index is at 53 (Neutral).
The circulating supply of Bitcoin is 19.70 million BTC out of a maximum supply of 21.00 million BTC. The current yearly supply inflation rate is 1.72%, which means that 332,430 BTC were created in the last year.
Why is BTC Price Dropping?
The recent drop in Bitcoin price can be attributed to several interconnected factors within the broader economic and geopolitical landscape. Firstly, the Federal Reserve's decision on interest rates has a significant impact on investor sentiment. The anticipation of higher interest rates can lead to a shift in investment strategies, potentially affecting demand for Bitcoin and other assets.
Additionally, the delayed approval or uncertainty surrounding spot Bitcoin ETFs has added to market volatility. The introduction of such ETFs could bring new waves of institutional and retail investors into the market, but delays or rejections can lead to short-term sell-offs.
The aftermath of the Russia-Ukraine war has also played a role, with geopolitical tensions affecting global markets. Uncertainty around economic stability post-conflict can drive investors towards more traditional safe-haven assets, impacting demand for riskier assets like Bitcoin.
Furthermore, concerns over instability in the U.S. banking system and fears of inflation worldwide have led investors to reassess their portfolios. Higher interest rates in the U.S. and the UK can make alternative investments like Bitcoin less attractive, impacting its price.
Lastly, the collapse of major cryptocurrency exchange FTX has heightened market unease and raised questions about the overall resilience of the crypto ecosystem. Such events can shake investor confidence and trigger selling pressure.
Looking ahead, Bitcoin's price trajectory will likely continue to be influenced by macroeconomic developments and regulatory decisions. Monitoring these factors will be crucial for understanding and predicting future price movements in the cryptocurrency market.
