Why is crypto down today? The start of outflows

The price of Bitcoin (BTC) falling near $66,000 has led to a significant drop in the value of the overall cryptocurrency market around the world.

Based on information from CoinGecko, the total value of all cryptocurrencies dropped by 4.6% within the last 24 hours, amounting to $2.63 trillion currently. In contrast, the daily trading volume experienced a significant surge of 42%, reaching $134.77 billion as of now, according to CoinGecko’s data.

The widespread market decrease occurred as Bitcoin, the front-runner cryptocurrency, fell from $70,000 to $66,400 within the last 24 hours. Currently, Bitcoin’s market value is approximately $1.3 trillion with a trading volume of $40 billion during this time frame.

In addition, data from Farside Investors indicates that Bitcoin ETFs experienced a net withdrawal of approximately $85.7 million on April 1. However, just the previous week, these funds recorded a significant inflow of around $862 million.

Why is crypto down today? The start of outflows

On March 31, Tether, the organization managing the largest stablecoin, bought 8,888 Bitcoins for a total of $618 million. The cost per Bitcoin was approximately $69,531 on average during this transaction. Currently, Tether owns more than 75,000 Bitcoins, with an average purchase price of around $30,305 each.

Buy the dip?

Certain investors and social media enthusiasts are debating if large-scale investors, referred to as “whales,” could be influencing market prices. Some suggest these whales might be purchasing stocks during price drops, commonly known as “buying the dip.”

Why is crypto down today? The start of outflows

Based on Santiment’s data, there has been a significant increase in “buy the dip” calls on social media in the last 24 hours. These calls accounted for approximately 33.55% of all crypto-related social activity.

According to Santiment’s analysis, a large number of discussions about potential buying chances on social media originate from Reddit and 4chan.

Approximately 2.46% of all social media discussions and posts revolve around the possibility of another market dip, according to the data.

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2024-04-02 11:51