Overnight trading saw a sharp decline in Bitcoin, indicating that even though the largest cryptocurrency in the world is still gaining traction in the mainstream financial community, it still has a propensity for significant declines.
The reason behind the 24-hour trading of bitcoin was not immediately apparent.
Even with the overnight decline, Bitcoin is still up over 57% year to date. It was trading close to all-time highs. The recent surge in the price of cryptocurrencies has been partly attributed to demand for and anticipation surrounding the new bitcoin ETFs that were introduced in the United States in January.
“I believe that’s a wise decision. The CEO of Crypto.com, Kris Marszalek, stated on CNBC’s “Squawk Box” on Friday, “We’re removing some of the leverage that has built up in the system.” He also mentioned that the options market was probably the source of the selling pressure.
Swift increases and sharp decreases have frequently occurred throughout the history of bitcoin. When bitcoin was in its prior bull market, In November 2021, bitcoin reached a high of over $68,000, but about a year later, it was trading below $20,000.
Source (CNBC)
