As reasons behind Bitcoin’s (BTC) decline increase, the largest daily loss since the FTX crash has been recorded.
After the approval of the spot Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC), Bitcoin’s rise gained momentum. A decrease in demand and even liquidation in funds in the past few days led to the start of a Bitcoin correction.
Bitcoin experienced around 8.4% value loss on Tuesday, March 19th, ending at around $5,600, which is the largest single-day percentage decline since the FTX crash on November 9, 2022.
Following Bitcoin’s rise to $73,500, sharp declines resulted in an overall 15% pullback in price.
Reasons for the Decline Increased
Economist Alex Kruger stated that the recent price decline in Bitcoin is due to various factors, including spot ETFs:
The reasons for the decline include excessive leverage, the possible delay in approval of the Ethereum ETF, negative closures of ETFs, and the meme coin frenzy on Solana.
On Tuesday, the spot Bitcoin ETFs saw the largest outflow ever, amounting to a net outflow of $326 million. On Monday, Grayscale observed a massive $643 million outflow.
Furthermore, it is believed that the U.S. Federal Reserve’s interest rate decision, to be announced today, also has an impact on the price declines. The Fed is expected to almost certainly keep interest rates unchanged today.
According to CME’s FedWatch data, there is a 99% probability that interest rates will remain steady.
