Reasons for bitcoin’s drop by more than 9% in a week revealed

Bitcoin fell by 9.7% in just one week, reaching $ 57,761. The reasons for the sharp drop caused concern among investors and traders.

The key factor was low market liquidity, which was exacerbated by the summer vacation activity of traders. Trading volume fell to its lowest level in three months, weakening bitcoin’s position. In addition, the market was put under considerable pressure by a decline in the value of Grayscale Bitcoin Trust (GBTC) shares, which often serves as an indicator of institutional investor sentiment. The value of GBTC fell by 3.1%, which further deepened market uncertainty.

Macroeconomic factors also played an important role in bitcoin’s decline. Rising US government bond yields have made traditional financial instruments more attractive than cryptocurrencies. In addition, the expectation of further interest rate hikes by the US Federal Reserve makes investors more cautious.

Bitcoin’s fall was another reminder of the volatility of the cryptocurrency market. Investors should be prepared for rapid changes by remaining vigilant and closely monitoring market signals. For now, the situation may remain uncertain, which creates both risks and opportunities for market participants.