Bitcoin & Crypto Markets Face Selling Pressure, What Triggered the Drop?

Bittime - The crypto market experienced a sharp decline on Wednesday, with Bitcoin (BTC) falling below $40,000 for the first time since July 2023. Ethereum (ETH) and other altcoins also experienced significant declines.

This decline occurred amidst increasing selling pressure in global financial markets. Investors are worried about the prospect of interest rate hikes by major central banks to fight inflation.

Apart from that, there was also a significant selling action in the crypto market over the last 24 hours. Which caused the global crypto market capitalization to fall by more than 2% from $2.57 trillion to $2.29 trillion.

What is the Impact of a Price Drop?

The impact was that the prices of Bitcoin (BTC) and Ethereum (ETH) fell 15% in just 5 hours, dragging down other altcoins such as Solana (SOL), BNB, XRP, and Cardano (ADA).

On-chain data from CryptoQuant on Miner Reserves and Miner to Exchange shows significant BTC movement.

This BTC move caused Bitcoin to reach almost $69,200 in the last 24 hours, only to fall to $59,323.

In general, the crypto market lost more than $200 billion in value with recent liquidations as BTC hit a new all-time high. According to Coinglass data, nearly $1.10 billion in crypto liquidations occurred in the last 24 hours, affecting more than 297,000 traders.

Check Today's Crypto Market:

Several factors triggered the decline in Bitcoin and other cryptocurrencies:

• Interest rate hikes: Concerns about interest rate hikes by major central banks have weighed on global financial markets, including cryptocurrency markets.
• Inflation: High inflation around the world has prompted central banks to raise interest rates, which could suppress economic growth and weigh on risk assets such as cryptocurrencies.
• War in Ukraine: The war in Ukraine has increased uncertainty in global financial markets and made investors reluctant to take risks.
• Regulation: Increasingly stringent cryptocurrency regulations in some countries may also weigh on the market.

Analysts predict that the cryptocurrency market will remain volatile in the near future. However, they also believe that the market has the potential to recover in the long term.

Also Read How to Buy Crypto:

Here are some tips for investing in cryptocurrency safely

• Do your research: Before investing in cryptocurrency, it is important to do your research and understand the risks.
• Diversify your portfolio: Don't put all your eggs in one basket. Diversify your portfolio by investing in various assets, including cryptocurrencies.
• Invest only what you can afford to lose: Cryptocurrencies are high-risk assets. Only invest what you can afford to lose.
• Use a secure cryptocurrency wallet: Store your cryptocurrency in a safe and secure cryptocurrency wallet.

The cryptocurrency market is still in its early stages of development. Market volatility is normal. Investors who have a high risk tolerance and a long-term investment horizon can consider investing in cryptocurrencies.

Other factors that allow the decline to occur

• Market sentiment: Market sentiment towards cryptocurrencies has turned negative in recent months. This can be caused by several factors, such as negative news reports about cryptocurrency scams and hacks.
• Market liquidity: The cryptocurrency market is still relatively small and illiquid. This means that small changes in demand can cause large changes in price.
• Market manipulation: There are concerns that the cryptocurrency market is being manipulated by whales (large investors) who can easily influence prices.

Impact of Decline

The decline of Bitcoin and other cryptocurrencies can have a negative impact on the cryptocurrency industry. This can cause:

• Investment decline: Investors may be reluctant to invest in cryptocurrency if they believe that its value will continue to fall.
• Declining adoption: A decline in the value of cryptocurrencies may make people less interested in using them as a means of payment.
• Business failure: Some businesses related to cryptocurrency may fail if their value continues to fall.

Future Scenarios

• Recovery: The value of Bitcoin and other cryptocurrencies may recover and reach new highs.
• Stabilization: The value of Bitcoin and other cryptocurrencies may be stable and fluctuate within a narrow range.
• Fallout: The value of Bitcoin and other cryptocurrencies may continue to fall and eventually become worthless.

Check Crypto Prices Today:

Conclusion

The decline of Bitcoin and cryptocurrencies has had a far-reaching impact on various sectors. It is important to monitor the situation closely and understand the risks.

How to Buy Bitcoin (BTC) on Bittime

You can buy and sell  Bitcoin (BTC)  in an easy and safe way via  Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

Bitcoin (BTC)  is available on Bittime with  the market pair BTC/IDR . To be able to buy  BTC IDR  at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn  the complete guide on how to buy Bitcoin (BTC) on Bittime . 

Monitor price  chart movements of Bitcoin (BTC ) ,  Ethereum (ETH) , Solana (SOL)  and other cryptos to find out today's crypto market trends in real-time on Bittime  

Also read:

Bitcoin Had a 7% Freefall, Was Coinbase's Disturbance the Culprit?

Bitcoin Slowly Strengthens, Is It Due to ETF Inflows and Spot Volume?

Bitcoin Experiences a Sharp Decline, Here Are Tips for Being Safe and Calculating Risk

DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.