News, Price Analysis

Why Did Bitcoin (BTC) Price Drop Below $60k?

Bitcoin (BTC) price slipped over 4 percent on Wednesday to reach a daily low of about $59,712 during the early New York session. The sudden 3.3 percent crypto drawback to around $2.34 trillion caused over $140 million in forced long liquidations. 

As the altcoin industry grapples with significant losses in the past 24 hours, more investors have sought refuge in the stablecoins market. According to the latest crypto oracles, the total stablecoins market, currently valued at about $160 billion, had an average daily traded volume of over $52 billion. 

In comparison, Bitcoin and Ethereum had a combined daily average traded volume of about $38 billion.

Top Reasons Bitcoin Price Slipped Below $60k

Upcoming High-Impact News

Later today, the United States Department of Labor will be releasing the unemployment claims, which is a strong indicator of economic health. Additionally, the US Federal Reserve will be releasing the FOMC meeting minutes, which will shed much-needed light on the economic outlook.

Notably, the Fed is expected to remain dovish ahead of the US general election and initiate interest rate cuts. 

Poor Performance of Spot BTC ETFs

The US spot Bitcoin ETFs have registered notable fluctuations in cash flows in the recent past. After five days of positive cash inflows, the US spot Bitcoin ETFs register a total cash outflow of about $14 million on Tuesday. 

The declining demand for spot Bitcoin ETFs amid the upcoming Mt.Gox distribution and heightened sales from the German government has significantly weighed heavily on bullish sentiment.

Anticipated Spot Ethereum ETF Listing

The listing of the approved spot Ethereum ETFs is forecasted to happen tomorrow, which will put the altcoin market in a higher spotlight. Already, the Bitcoin dominance has been forming a macro reversal pattern, which will accelerate the ongoing crypto cash rotation to the altcoin industry.

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