Bitcoin has been facing a tough time lately, with its price struggling to make a comeback. The cryptocurrency market as a whole has been feeling the pressure, with many coins experiencing a drop in value over the past 24 hours.
Despite attempting to push towards $66K, Bitcoin was unable to maintain its momentum and is currently trading below $64K. This decline has led to a significant number of liquidated positions, with around $150 million worth of positions being liquidated in the past day, the majority of which were long positions.
The drop in Bitcoin’s price is not the only factor at play here. Trader fatigue has reached record levels, indicating that many traders are feeling fearful or disinterested in the current price range. According to analytics company Santiment, this level of fear, uncertainty, and doubt (FUD) is rare and could lead to a bounce-back in price, rewarding those who remain patient.
In addition to trader fatigue, there are other reasons for the decline in Bitcoin’s price. Retail investors have yet to fully enter the market, and there have been considerable outflows from spot Bitcoin exchange-traded funds (ETFs). In the US alone, spot Bitcoin ETFs have experienced $900 million in losses over the past week.
The decline in Bitcoin’s price is also coinciding with a broader decline in the stock market, with leading stocks such as NVDA, AAPL, and MSFT all experiencing drops in value. This interconnectedness between the cryptocurrency and stock markets suggests a larger trend at play.
Overall, the reasons for the decline in Bitcoin’s price are multifaceted, including factors such as trader fatigue, lack of retail investor participation, and outflows from spot Bitcoin ETFs. As the market continues to fluctuate, it will be important to monitor these factors and their impact on Bitcoin’s price and the broader cryptocurrency market.