Here is Why Bitcoin’s Price Declined Sharply, According to Matrixport

A recent report from Matrixport highlights a significant drop in Bitcoin's value this morning due to the liquidation of long positions.

The decline in BTC comes in the wake of recent dovish comments from the Federal Reserve and a lack of bullish momentum during Monday’s trading session.

Matrixport’s analysis suggests that the pullback was primarily driven by long position liquidations in a low liquidity market, as there was no clear catalyst for the drop.

The report underscores the critical nature of the $59,000 level for Bitcoin, warning that falling below this threshold could heighten market concerns and exacerbate the decline. This downturn is notable despite recent inflows into US BTC ETFs, indicating the market’s susceptibility to sudden shifts in sentiment.

Additionally, market participants are apprehensive about the potential sale of Bitcoin seized by the US government. Despite this volatility, Bitcoin has risen 42% this year, reaching a peak of $73,798 in March. However, the prolonged period below this high has raised doubts about the durability of the rally.