The reasons for the sharp drop in bitcoin to $ 65,000 have been revealed

The flagship of the cryptocurrency market and altcoins fell sharply on Tuesday. This happened amid investor concerns about the state of the global economy and the summer liquidity squeeze in the markets.

According to CNBC, the price of BTC $65,703.63 Bitcoin -0.33% Market capitalization $1.3 trillion VOL. 24 hours $0.63 billion fell by 3% to $ 64,680, the lowest since May 16. Earlier in the day, the quotes dropped to $ 64,347. Other popular cryptocurrencies lost between 4 and 7% of their value.

Analysts attribute the sharp drop to investors' fears of a global economic slowdown amid high inflation and geopolitical tensions. In addition, financial market activity traditionally declines in summer due to traders' and investors' vacations.

«During periods of economic uncertainty, investors either sell assets to minimize losses or withdraw from riskier positions, waiting for the situation to be clarified,» said Marko Jurina, CEO of Jumper. Exchange, a decentralized cryptocurrency exchange. «Now we are probably seeing a combination of these scenarios,» he added.

Bitcoin’s decline comes amid a decline in other risky assets. The Nasdaq technology index fell by 0.1%, while the S&P 500 stock index ended almost unchanged. Coinbase shares fell by 3%, MicroStrategy by 1%.

In recent months, bitcoin has tried several times in vain to break the $ 70,000 mark. The peak value was recorded on March 14 at $ 73,797.