"Try if BTC falls again to $52K, do you still like it or not?"
Investors on Wednesday must have been stunned after seeing the price of the king of cryptocurrency Bitcoin (BTC) plummet to $56,604 due to its declining demand compared to short positions.
The spot BTC ETF until May 1, 2024 which saw a total outflow of about 10% was also the cause of the fall in the price of BTC, where Grayscale Bitcoin Trust (GBTC) sold $17 billion since the spot BTC ETF was approved.
Liquidations worth more than $381.7 million in the crypto derivatives market that have erupted in the past 24 hours usually involve voluntary sales of digital assets by brokers that can push the price of BTC lower.
According to digital asset research firm 10x Research, the price of BTC could experience selling pressure to $52,000 following the outflow of spot ETFs in the United States (US) amounting to $540 million has occurred since the BTC halving event on April 20, 2024.
Despite that, BTC price recovered above $59,000 shortly after the Federal Reserve (Fed) decided to keep interest rates at 5.25% to 5.5% during the Federal Open Market Committee (FOMC) meeting yesterday.
The Fed also plans to slow interest rates through the sale of US Treasury securities starting in June 2024 which could reduce its monthly redemption limit from $60 billion to $25 billion.
Words from the Fed have left investors worried that the US central bank may need to keep interest rates higher for longer to ease nationwide price inflation that remains above 3%.
As of this writing, the price of BTC has fallen by 4.18% at $57,716 in the last 24 hours with a market capitalization of over $1 trillion and has recorded a 10.74% decline over the past week.
