Sudden Market Downturn
On April 12, the crypto market took a hit, with Bitcoin falling below $67,000 for the first time in over a week. This caused nearly $900 million in liquidations in the past 24 hours.
Behind the Decline
According to Santiment, an on-chain analytics firm, the drop was driven by:
- CPI and Inflation Concerns: Rising inflation and concerns about the Consumer Price Index (CPI) have led to worries about the Federal Reserve (Fed) maintaining higher interest rates.
- High Interest Rates: Increased interest rates make high-risk assets like cryptocurrencies less attractive to investors, leading to price declines.
Market Impact
- Bitcoin: Bitcoin fell by about 5% in a day, dropping from above $70,000 to below $67,000.
- Ether: Ether, the second-largest cryptocurrency, dropped by almost 8% in less than 24 hours.
- Traditional Assets: Traditional assets like the S&P 500 index and gold also experienced declines, suggesting broader concerns about inflation.
Current Bitcoin Price
As of this writing, Bitcoin is trading around $66,826, down 5% in the past 24 hours.
