Bitcoin

Ethereum

<p>The fluctuation in Bitcoin prices in 2024 can be attributed to several factors based on the information available:</p><h2 id="header-0">1. Market Sentiment and External Economic Factors:</h2><p></p><p><strong>Global Market Movements: </strong>There was a significant sell-off in equity markets, particularly noted with a major slump in the Nasdaq and S&amp;P 500, which often correlates with risk assets like Bitcoin. This was partly due to reactions to monetary policy changes, like the Bank of Japan&#39;s minor rate hike, which sent ripples through global markets.</p><p><strong>Interest Rate Expectations: </strong>The U.S. Federal Reserve&#39;s potential shift towards an easing cycle could initially seem bullish for Bitcoin due to lower borrowing costs. However, the uncertainty around when these cuts might occur or if they&#39;ll be delayed can lead to volatility.</p><h2 id="header-1">2. Crypto-Specific Events:</h2><p></p><p><strong>Large Sell-offs: </strong>Significant movements of Bitcoin from wallets linked to entities like Genesis Trading, alongside sales from government seizures (e.g., German government selling 50,000 bitcoins), have introduced large supply shocks into the market, which typically lead to price drops.</p><p><strong>Futures Market Dynamics:</strong> A sharp decline in Bitcoin futures open interest was observed, indicating a reduction in speculative trading, which can lead to price drops as it reflects less confidence or interest in holding Bitcoin positions.</p><p><strong>Miner Economics:</strong> The situation with U.S. miners being forced to sell Bitcoin to cover costs due to price drops below operational costs could exacerbate the selling pressure, as noted in posts from X users discussing miners&#39; financial health.</p><h2 id="header-2">3. Technical Analysis and Market Psychology:</h2><p></p><p><strong>Price Patterns: </strong>Discussions around Bitcoin&#39;s price movements often include technical analysis, like the formation of a long wick Doji in the monthly candle, suggesting indecision or a potential reversal in the market sentiment.<br />Capitulation Events: The mention of Bitcoin experiencing its largest drawdown of the cycle indicates moments of panic selling, which can further drive prices down due to market psychology.</p><h2 id="header-3">4. Regulatory and Macro-Economic News:</h2><p></p><p><strong>Interest Rate Decisions:</strong> The anticipation or delay in interest rate cuts by central banks can influence investor behavior towards risk assets like Bitcoin. For instance, if rate cuts are postponed, it might lead to a flight to safety from riskier assets.</p><p><strong>Regulatory Actions:</strong> While not directly mentioned, the broader crypto market often reacts to news or rumors of regulatory changes, which could affect Bitcoin&#39;s price if investors fear more stringent regulations or crackdowns.</p><h2 id="header-4">Final Words</h2><p></p><p>From the information gathered, it&#39;s clear that <a href="https://telegaon.com/bitcoin-btc-price-prediction-2020-2021-2022-2025-2030/" rel="noopener noreferrer nofollow">Bitcoin&#39;s price</a> in 2024 was influenced by a mix of macroeconomic factors, specific crypto market dynamics, and the psychological impact on investors. The combination of these elements created a volatile environment where Bitcoin&#39;s price saw significant fluctuations.</p>

Why Bitcoin prices are falling?

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