0
0
Bitcoin Experiences Price Dip Below $67,000
Bitcoin’s price dropped to below $67,000 on a Tuesday morning, erasing gains made over the previous week. According to data from CoinGecko, Bitcoin is down 4.6% on the day and 6% on the week, currently trading at $66,139.
The broader crypto market followed suit with Bitcoin, as the total market cap of all cryptocurrencies dropped by 5.2% to $2.6 trillion, wiping over $122 billion from the market. Apart from stablecoins, the top 30 cryptocurrencies by market cap all saw a decline, with Ethereum, the second-largest cryptocurrency, dropping over 6% to $3,331. Among the top 30 tokens, Aptos and Bitcoin Cash experienced the largest losses, down 13.5% and 9.9% respectively.
Over the past 24 hours, the entire crypto market witnessed over $426 million in liquidations, with $342 million in long liquidations, as per data from CoinGlass. Bitcoin alone saw over $90 million in longs liquidated overnight.
Market Volatility and Factors Influencing Bitcoin’s Price Dip
This decline in price coincides with the U.S. dollar index (DXY) hitting over 105 for the first time this year, indicating a strong dollar against major foreign currencies such as the Euro, Swiss franc, Japanese yen, Canadian dollar, British pound, and Swedish krona.
Tuesday’s price dip occurs amidst heightened volatility in the crypto market leading up to April’s Bitcoin halving, where the block reward awarded to miners is halved. While historical data suggests an increase in Bitcoin’s price post-halving, debates persist over whether the halving’s impact is already factored into the market, with some analysts pointing to a sense of uncertainty among traders ahead of this event.
This year’s halving stands out due to Bitcoin achieving an all-time high prior to the halving following the authorization of multiple U.S. spot Bitcoin ETFs in January. Analysts attribute this bullish trend to the scarcity created by the ETFs acquiring Bitcoin and the impending halving.
Crypto Market Outlook for Q2
A recent report from crypto exchange Coinbase anticipates a positive outlook for the crypto market in the second quarter. This optimism is fueled by increased institutional interest in the crypto space following the approval of Bitcoin ETFs, setting the stage for further market growth.
Image/Photo credit: source url
