Economist Alex Kruger listed 4 reasons for the drop in Bitcoin.
In a tweet on March 20, Alex Kruger revealed the reasons for the $12,000 drop in Bitcoin, which lasted from $73,000 to $61,500.
In his tweet, he first pointed out that there are too many leveraged transactions in the crypto market.
Secondly, he addressed Ethereum, stating that the recent slowdown in the rise in ETH price could be related to the weakening chance of approval from the US Securities and Exchange Commission (SEC) with Spot Ethereum ETF applications.
He then drew attention to the recent decrease in spot Bitcoin ETF demand and the negative closing days. Kruger stressed that the data is coming with a one-day delay and also issued a “be careful” warning.
Finally, Kruger said that the meme coin craze in Solana (SOL) also contributed to the drop, indicating that the market has gone too far.
According to CoinGecko data, Bitcoin is currently trading at $63,052.
