"Just want to ask, do you all want the price of BTC to fall again or to rise?"
Failing to hold its ground, the price of cryptocurrency king Bitcoin (BTC) tumbled to $64,552 as the US Institute of Supply Management (ISM) data release yesterday saw a 2.5% increase in its manufacturing index.
Therefore, expectations for the easing of monetary policy by the Federal Reserve (Fed) are decreasing, plus the benchmark 10-year US Treasury yield has increased from 4.18% to 4.33%.
So here it can be seen that investors will look for higher returns when bond yields rise following their shrinking risk appetite which will prompt them to avoid risky assets such as crypto.
The decline of the entire crypto market including BTC was also triggered by reduced inflows into the spot BTC ETF in the US, where on April 1, 2024 there was a $85.7 million withdrawal process.
This is because in the digital asset sector that is always uncertain or declining, investors may be more interested in holding cash or investing in more traditional and less volatile assets.
It is well known that the decline in the price of digital assets has caused a flurry of liquidations in the derivative market following the crypto market in the past day experiencing $428 million in liquidated positions with long positions accounting for approximately $343 million.
Liquidations of such long derivative positions can lead to downward pressure on digital asset prices especially when there is a lack of sufficient buying momentum from trading volume.
As of this writing, BTC price has plunged by 5.89% at $65,297 in the last 24 hours with a market capitalization of over $1 trillion and has recorded a 7.30% decline over the past week.
