Lately, just when Bitcoin seems to be recovering and rising, it immediately experiences a correction.
The same thing happened again this week, and Bitcoin experienced another sharp correction.
At this point, the downtrend in Bitcoin, which was around $92,000 a few days ago, has deepened, and yesterday evening it even broke through the $86,000 level.
According to CoinMarketCap data, Bitcoin (BTC) continues to trade at $86,200, down 4% in the last 24 hours, while major altcoins, including Ethereum (ETH), are also generally declining.
Ethereum also fell by 6%, dropping below $3,000, while XRP fell by 5.8% and Solana (SOL) by 4%.
This decline is attributed to macroeconomic uncertainties, with investors shifting from riskier assets to less risky ones.
At this point, Presto Research analyst Rick Maeda said there wasn’t a clear cryptocurrency-specific reason behind the decline.
However, Maeda noted that the sell-off in Bitcoin and altcoins largely coincided with the opening of the US stock market, stating, “The stock market opened at lower levels. This dragged risky assets down with it, making the decline inevitable.”
Vincent Liu, an analyst at Kronos Research, shared similar views. Speaking to The Block, Liu pointed to macroeconomic uncertainties as the reason for the decline.
Liu also pointed to the shutdown of mining equipment in China’s Xinjiang region, suggesting it could be a contributing factor to the decline. He stated that China’s crackdown on the mining sector could lower Bitcoin’s hash rate in the short term and lead to short-term selling pressure, but the effect would likely be temporary.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/the-decline-in-bitcoin-ethereum-and-altcoins-is-deepening-what-is-causing-the-drop-two-top-analysts-offered-two-possible-reasons/
