What Caused Bitcoin BTC Price to Fall Below 60000

Bitcoin’s (BTC) value dropped by more than 4 percent on Wednesday, hitting a daily low of approximately $59,712 during the early New York trading session. The sudden 3.3 percent decline in the cryptocurrency market led to over $140 million in forced long liquidations, as the altcoin industry experienced significant losses over the past 24 hours. This prompted more investors to seek refuge in the stablecoins market, which currently has a total value of about $160 billion and an average daily trading volume of over $52 billion.

In contrast, the combined daily average trading volume of Bitcoin and Ethereum was around $38 billion. The decline in Bitcoin prices below $60k can be attributed to several factors, including upcoming high-impact news such as the release of unemployment claims by the United States Department of Labor, and the release of the FOMC meeting minutes by the US Federal Reserve. The latter is expected to provide insight into the economic outlook, with the Fed anticipated to remain dovish ahead of the US general election and initiate interest rate cuts.

Furthermore, the poor performance of spot Bitcoin ETFs in the US, which saw a total cash outflow of about $14 million on Tuesday after five days of positive cash inflows, has contributed to the decline in demand. This is compounded by the upcoming Mt.Gox distribution and increased sales from the German government, which have weighed heavily on bullish sentiment.

On the other hand, the anticipated listing of approved spot Ethereum ETFs is expected to occur tomorrow, putting the altcoin market in the spotlight. The ongoing crypto cash rotation to the altcoin industry is also expected to accelerate, as the Bitcoin dominance forms a macro reversal pattern. This will likely lead to increased trading activity in the altcoin market.