Bitcoin (BTC) has plummeted below $66K, trading at $65,675 at press time, which is a 3.98% drop in 24h, and a 47.9% dip from its October all-time high (ATH) of $126K.
Source: CoinMarketCap
Liquidations in Bitcoin futures positions totaled $189.17 million, with long positions accounting for $173.24 million.
Traditional assets have not been spared, with gold and silver witnessing 20% and 45% drawdowns from their ATHs, while the Magnificent 7 stocks fell by upto 34% from their January peaks.
Why is Bitcoin down today?
Bitcoin’s price has declined today amid uncertainty caused by the escalation of strikes between the US and Iran and its proxies. Crude oil prices now trade at least $99.13/barrel, adding to inflationary fears amid rising energy prices.
Source: OilPrice.com
The US Federal Reserve remains undecided on interest-rate action, calling it a “challenging situation” driven by new inflationary shocks amid the conflict in the Middle East. The current US inflation rate is near 3%, well above the Fed’s 2% target.
Additionally, $16.38 billion in Bitcoin and Ethereum futures contracts expired on the Deribit exchange today, marking the largest single-day derivative settlements of the year.
As a result, sentiment turned bearish among institutions, with spot Bitcoin ETFs seeing net outflows of $306.44 million between March 26 and March 27.
BTC price prediction
According to market analyst Aksel Kibar, Bitcoin is mirroring previous bearish wedge patterns, indicating a possible downside move towards $52.5K.
Another analyst says a bottom will form once BTC drops towards $50K. For bullish investors, both predictions signal a great buying opportunity in the near future.
Goldman Sachs already calls a bottom, while gold permabull Peter Schiff criticizes the coin’s fall below its 2021 peak of $69K “despite record hype and so-called adoption.”
Developments in the US-Iran conflict this weekend are the key events to watch, along with the resulting energy prices and investor action.
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