Bitcoin excited investors by reaching as high as $69,500 at the beginning of the week, but it was short-lived.
While the BTC price has fallen to $66,000 levels, altcoins are also experiencing pullbacks.
At this point, while Dogecoin (DOGE) and XRP lead the decline, the reason for the decline in BTC and altcoins is wondered.
Speaking to Coindesk, FxPro senior analyst Alex Kuptsikevich stated that the main reason for this decline was Bitcoin’s failure to break through the critical resistance level of $70,000.
The analyst also cited investors taking profits from the rally earlier this week, US spot Bitcoin ETFs ending a 7-day inflow streak, and a pause in stablecoin issuance as reasons for the decline.
“The main reason for the entire crypto market decline is that the bears in Bitcoin successfully defended an attack on the $70,000 level.
Investors intensified selling at $69.5K early on Monday and pushed the price down to $66.5K on Tuesday morning.
Additionally, stablecoin volume has not increased since late September, creating a potential setback for broader cryptocurrency market growth as stablecoins are typically viewed as liquidity for quick purchases of the underlying cryptocurrency.
The previous growth momentum was from August to September, when the overall crypto market capitalization was pushed off the bottom.”
Bitcoin continues to trade at $66,340 at the time of writing.
*This is not investment advice.