Krutika Adani
As investors failed to make gains within their investment horizons from their purchased Bitcoin, many of them decided to exit their investments.
The markets had an unsustainable number of long trades in Bitcoin, which were squeezed after its price declined below $65k.
Over the last few days, investors have withdrawn $1 billion from Bitcoin ETFs, mainly from the Grayscale Spot ETF.
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.
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.