Why Is Bitcoin (BTC) Falling? Experienced Analyst Explained, Listed the Reasons!

Bitcoin Pullback After Reaching New High

After hitting an all-time high near $69,500 earlier this week, Bitcoin (BTC) has experienced a modest correction. Altcoins have also seen a downturn.

Reasons for the Decline

Analysts attribute the decline to several factors:

• Bitcoin's failure to break through the crucial $70,000 resistance level.
• Investors cashing in on earlier gains.
• An end to the inflow of funds into spot Bitcoin ETFs.
• A pause in stablecoin issuance, which is seen as a liquidity source for cryptocurrency purchases.

Market Impact

Bitcoin is currently trading around $66,340, a slight decline from its peak.

Analyst Insights

According to Alex Kuptsikevich, a senior analyst at FxPro, "The main reason for the entire crypto market decline is that the bears in Bitcoin successfully defended an attack on the $70,000 level."

He also noted that stablecoin volumes have not increased since late September, potentially hindering the broader cryptocurrency market's growth.

Disclaimer

This is not financial advice.