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Bitcoin’s price crashes to $66K: Blame the halving or something else?

2min Read

Outflows from spot ETFs and stronger U.S. manufacturing sector data likely caused Bitcoin’s decline.

Bitcoin sinks to $66K: Is the Halving to blame, or something else?

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  • Long positions constituted about 83% of the total liquidations.
  • An analyst reaffirmed that the market generally becomes “significantly volatile” in the lead up to Bitcoin’s halving.

Bitcoin [BTC] sharply corrected during early Asia hours on Tuesday, plunging 5.7% to as low as $66,000.

The sudden retracement triggered liquidations worth $200 million from the entire crypto market in the last four hours, as per AMBCrypto’s analysis of Coinglass’ data.

Long positions constituted about 83% of the total liquidations.

Total crypto market liquidations

Source: Coinglass

The dip also caused the majority of BTC derivatives traders to turn bearish on the asset.

Also, the Long/Shorts Ratio fell sharply below 1 in the last few hours until press time, indicating a sharp increase in bearish leveraged positions.

This slump followed a weak start to the week for Bitcoin spot exchange-traded funds (ETFs).

Ten new investment avenues, tracking spot prices of the world’s largest digital asset, witnessed net outflows of $85 million on the 1st of April, AMBCrypto noticed using SoSo Value’s data.

Bitcoin spot ETFs

Source: Coinglass

The downward pressure was also a reaction to stronger-than-expected U.S. manufacturing sector data, Shivam Thakral, CEO of Indian cryptocurrency BuyUcoin, said to AMBCrypto.

Typically, risk-based markets such as cryptocurrencies and equities interpret such events as a lower likelihood of the U.S. Federal Reserve cutting interest rates.

Wall Street’s main indices like S&P 500 and Nasdaq Composite also slipped lower on this development.


Read Bitcoin’s [BTC] Price Prediction 2024-25


Thakral, however, reaffirmed that the crypto market generally becomes “significantly volatile” in the lead up to Bitcoin’s halving. Hence, participants could brace for more ebbs and flows over the next two weeks.

The market sentiment was one of “extreme greed” at press time, according to Hyblock Capital’s data. This could accelerate buying pressure in the days to come, helping Bitcoin push further north.

Bitcoin Fear and Greed Index

Source: Hyblock Capital

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Aniket Verma works as a journalist at AMBCrypto. Contrary to most who are primarily interested in merely tracking price movements of cryptos, his focus is on examining the niche intersection between cryptocurrencies and traditional finance. A so-so Bitcoin maximalist, Aniket has a strong disdain for memecoins and the unfounded frenzy they seem to generate every market season. Coming from a strong engineering background, Aniket previously worked as a Content Manager for TV9 Network. Before his stint over there, he was an Associate Multimedia News Producer at Reuters.
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