The drop in Bitcoin’s price to $66,013 today on Bitstamp appears to be influenced by two main factors: outflows from GBTC and reduced chances of an interest rate cut.

Bitcoin had been experiencing a steady increase for six months, reaching levels not seen in nearly a decade. However, it has now decreased by over 4% to $66,761.

Impact of Bitcoin ETF Outflows and Rate Cut Possibilities on Bitcoin’s Price

The recent decrease in Bitcoin’s price is primarily attributed to individuals withdrawing their investments from Bitcoin ETFs. On April 1st, Grayscale’s GBTC experienced a significant outflow of $302 million, surpassing expectations. Overall, Bitcoin ETFs lost $85.7 million on Monday, with products from BlackRock and Fidelity failing to compensate for GBTC’s losses.

Another reason for the decline in Bitcoin's price is the shift in opinions among bond traders regarding the likelihood of interest rate cuts by the Federal Reserve. Speculations about a rate cut in June are diminishing, reducing the appeal of risky investments like Bitcoin.

The Federal Reserve's Christopher Waller mentioned a possible delay in rate cuts due to lower-than-expected inflation. The Financial Times reported that only a minority of Federal Reserve officials are in favor of three rate cuts in 2024. Raphael Bostic even suggested that there might be only one rate cut this year. All these factors combined are contributing to the drop in Bitcoin's price.

Significant Crypto Market Sell-Offs: Many Traders Facing Losses

Over the last 24 hours, the cryptocurrency market has witnessed a substantial number of liquidations, totaling over $500 million. Long positions suffered the most significant impact, accounting for the majority at $417 million.

This widespread liquidation has affected a large number of traders, surpassing 155,000 individuals. Noteworthy is the largest single liquidation order worth a staggering $7.48 million, highlighting the inherent volatility and risks associated with cryptocurrency trading across various platforms.

Important: Please be advised that this article is intended solely for informational purposes and should not be construed as legal, tax, investment, financial, or any other form of advice.