Bitcoin endures biggest daily price drop since FTX crash
The price of Bitcoin (BTC) dropped drastically on Tuesday (Mar 19), when it registered its biggest single-day loss since the infamous collapse of the FTX exchange in November 2022.
According to data from CoinMarketCap, Bitcoin fell from over $68,000 to $61,900 within one day – a fall of 9%.
The fall marks its steepest 24-hour dip in percentage terms since November 9, 2022, when prices tumbled more than 14% following the bankruptcy of Sam Bankman-Fried’s FTX exchange.
The latest price correction has been attributed to several factors, including outflows from spot exchange-traded funds (ETFs) tracking Bitcoin.
Provisional data from UK investment firm Farside showed a record net outflow of $326 million from spot ETFs on Tuesday, following a record outflow of $643 million from Grayscale’s ETF on Monday.
Bitcoin ETF Flow (US$ million) – 2024-03-19
TOTAL NET FLOW: -326.2
(Provisional data)
IBIT: 75.2
FBTC: 39.6
BITB: 2.5
ARKB: 0
BTCO: 0
EZBC: 0
BRRR: 0
HODL: 0
BTCW: 0
GBTC: -443.5
For all the data & disclaimers visit:https://t.co/4ISlrCgZdk
— Farside Investors (@FarsideUK) March 20, 2024
Alex Kruger, a trader and economist, highlighted the reasons behind the crash, stating on X, “Reasons for the crash, in order of importance: #1 Too much leverage (funding matters). #2 ETH driving market south (market decided ETF was not passing). #3 Negative BTC ETF inflows (careful, data is T+1). #4 Solana shitcoin mania (it went too far).”
Reasons for the crash, in order of importance
(for those who need them)
#1 Too much leverage (funding matters)
#2 ETH driving market south (market decided ETF not passing)
#3 Negative BTC ETF inflows (careful, data is T+1)
#4 Solana shitcoin mania (it went too far)
— Alex Krüger (@krugermacro) March 20, 2024
How has the price of Bitcoin changed?It’s worth noting that the price of Bitcoin is still massively up for the year (+122%) and even in the last month there have been considerable gains (+21%). With an election year ahead for the US and more speculation likely around an Ethereum ETF, Bitcoin investors could be set for further volatility in the coming weeks. Although that comes with the territory for any cryptocurrency investment.
Bitcoin watchers continue to see signs of wider adoption of the digital asset across society. On Tuesday we reported how the world’s biggest pension fund is considering Bitcoin as a potential diversification tool amidst economic and technological changes.
Featured image: generated by ideogram
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