While the decline in Bitcoin after ATH extended to below $ 61,000, BTC fell over 8% on Tuesday, experiencing its biggest single-day decline since the FTX crash in November 2022.
While the weakening of inflows to ETFs, record outflows and BTC outflows from Grayscale were effective in this decline, popular economist Alex Kruger listed the reasons for Bitcoin's latest decline.
Stating that the recent decline in Bitcoin was due to various factors, especially outflows from spot ETFs, Kruger said that these included the Solana-based mem token craze:
“The causes of the collapse, in order of importance:
1-Too much leverage in the market 2-Decreased likelihood of Ethereum ETFs getting approval (the market decided that the ETF was not approved). 3-Negative Bitcoin ETF inflows 4-Solana-based meme token craze (gone too far)”
Apart from Alex Kruger, Rachael Lucas from BTC Markets also evaluated the market. Speaking to The Block, Lucas said, “There is a speculative shift to smaller cryptocurrencies. “At this point, AVAX and SOL-based meme tokens contributed to Bitcoin's decline.”
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
*This is not investment advice.
