Top Five Factors Responsible for Bloodbath in Bitcoin

Krutika Adani

Investor Fatigue

As investors failed to make gains within their investment horizons from their purchased Bitcoin, many of them decided to exit their investments.

Long Squeeze

The markets had an unsustainable number of long trades in Bitcoin, which were squeezed after its price declined below $65k.

ETF Outflows

Over the last few days, investors have withdrawn $1 billion from Bitcoin ETFs, mainly from the Grayscale Spot ETF.

Miners Selling Bitcoin

Bitcoin miners have been troubled with low revenue as miner fees dropped this month. As a result, miners were forced to sell Bitcoins from their stash.

Market Sentiments

Bitcoin’s weighted sentiment was at an 18-month low, even lower than when Bitcoin had a price of $16k. This caused a panic selling, and the markets crashed.