Traders suggest that Bitcoin's recent decline was necessary, and any further drops are likely to be seen as chances to buy.
On March 5, Bitcoin reached a record high of $69,324 before experiencing a significant drop of 9.75% to $59,323 shortly after Wall Street's opening bell. Analysts interpret this correction as a positive step preceding a period of healthy consolidation.
Top Reasons Behind Bitcoin Price Crash
Bitcoin's correction coincided with a 2.6% retracement in Nasdaq-100 index futures, which had recently peaked at an all-time high of 18,377 on March 4.
The stock market displayed initial signs of strain following reports indicating a 24% decrease in Apple iPhone sales in China, as projected by a consumer research firm.
NYCB shares plummeted by 40% subsequent to the release of its quarterly report.
New York Community Bancorp (NYCB) witnessed sustained declines in its shares after the company replaced its CEO due to reported "material weaknesses" in internal controls.
Investors sought refuge in gold as a safe haven, with the precious metal gaining 4.2% in four days and currently trading close to its all-time high.
The recent surge in Bitcoin's value captured media attention, potentially prompting significant investors (whales) to contemplate shorting the cryptocurrency or encouraging holders to reduce their positions amidst skepticism from Bitcoin critics.
The funding rate on Bitcoin perpetual contracts surpassed 1% per week on Feb. 28, drawing significant attention. However, this metric has consistently reflected investors' optimism over the past few months, as underscored by user bitcoinmunger on X social network.
Interested in delving deeper into a comprehensive analysis? Uncover the intricate factors influencing the recent decline in Bitcoin prices and explore why this instance may vary from previous occurrences. For detailed insights, delve into the article below.
https://coinpedia.org/news/why-did-the-crypto-market-crash-what-next-for-bitcoin-and-altcoin/