The leading cryptocurrency, Bitcoin, experienced a drop to $65,000 after facing declines on Monday and Tuesday. Bloomberg reported that the latest decline in Bitcoin was influenced by data updates on spot Bitcoin ETFs, leading to fluctuations in the cryptocurrency market during Asian trading hours following the closure of the US stock market.

According to analysts interviewed by Bloomberg, the automatic trading protocols reacting to data from US spot Bitcoin ETFs are responsible for the price fluctuations in Bitcoin and other cryptocurrencies. The significant decline observed yesterday morning was attributed to outflows from US ETFs, marking the most substantial drop in the past month during Asian trading hours.

Describing the implications of ETF data, Shiliang Tang, president of Arbelos Markets, highlighted that algorithmic trading bots can process spot Bitcoin ETF data from the US automatically, making trading decisions based on this information. The decline in Bitcoin coincided with ETF data release from the US, indicating a strong correlation between the two.

Despite the positive flow in ETF data in February and early March leading to strengthening in the Bitcoin market, a decline was witnessed in late March after outflows in ETF data. This sequence of events explains the drop in Bitcoin price during Asian trading hours. As of now, Bitcoin is trading at $66,280.

*Please note that this analysis does not constitute investment advice.