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Why Is Bitcoin Down Today?
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This post will explore the main events that appear to explain why #BTC is down today.
1. DEBT CEILING LOOMS LARGE
All eyes are turning to the U.S. Congress as the government continues to stumble toward its self-imposed debt ceiling.
All eyes are turning to the U.S. Congress as the government continues to stumble toward its self-imposed debt ceiling.
The only way to avert the nightmarish scenario of the
U.S. defaulting on its debt obligations is for Congress to increase the borrowing limit. Despite months of chatter, the Biden administration hasn't been able to convince Congress to budge on the matter.
U.S. defaulting on its debt obligations is for Congress to increase the borrowing limit. Despite months of chatter, the Biden administration hasn't been able to convince Congress to budge on the matter.
With every day that passes, the Biden administration inches closer to the debt ceiling, fueling uncertainty in global markets. Naturally, the most risk-on assets, such as Bitcoin, suffer when the market is gripped by uncertainty.
2. US REGULATORY UNCERTAINTY CONTINUES
The U.S. regulatory bodies are a constant concern for crypto investors and traders. Even though the E.U. and several East Asian countries have established clear regulatory frameworks for digital assets, the U.S. languishes in uncertainty.
The U.S. regulatory bodies are a constant concern for crypto investors and traders. Even though the E.U. and several East Asian countries have established clear regulatory frameworks for digital assets, the U.S. languishes in uncertainty.
The ongoing lack of clarity is resulting in volatility in the market as traders are left trying to guess what the future holds for Bitcoin. The U.S. Securities and Exchange Commission (SEC) is expected to sue Coinbase, according to a statement from the exchange.
3. CRYPTO WINTER IMPACT BTC CONFERENCE
The mood around the annual Bitcoin conference held in Miami has been dampened by the crypto winter. The giant networking event, where general admission tickets sell for around $1,000, attracted over 30,000 guests last year.
The mood around the annual Bitcoin conference held in Miami has been dampened by the crypto winter. The giant networking event, where general admission tickets sell for around $1,000, attracted over 30,000 guests last year.
This year the organizers expect attendance to be around 50% lower than last year, reflecting a potentially concerning trend in the industry.
4. $30 MILLION $BTC FUTURES LIQUIDATED
On-chain data from Coinglass suggests that traders have been feeling bearish over the last 24hrs. As a result, around $30 million worth of BTC futures has been liquidated, with most positions being long positions betting on higher prices.
On-chain data from Coinglass suggests that traders have been feeling bearish over the last 24hrs. As a result, around $30 million worth of BTC futures has been liquidated, with most positions being long positions betting on higher prices.
Although $25 million of liquidations were long positions, around $6 million in short positions were also liquidated, which reflects the volatility of $BTC's price in the last 24 hours.
5. HACKER TAKES OVER TORNADO CASH
Tornado Cash, suffered a potentially critical blow when a hacker took control of the project's DAO through a voter fraud attack. The hack sent shockwaves through the market, driving down the price of several cryptos, including Bitcoin.
Tornado Cash, suffered a potentially critical blow when a hacker took control of the project's DAO through a voter fraud attack. The hack sent shockwaves through the market, driving down the price of several cryptos, including Bitcoin.
The hacker gained access to the network's $TORN governance tokens held in the DAO's treasury. The hacker has since proposed withdrawing his attack in a proposal that could pass on May 26th, but their true motivations remain unclear.
Conclusion📍
To sum up, there are no definitive ways of pinpointing exactly why Bitcoin is down today. However, it can be said with some assurance that a combination of the above factors and events has affected the level of fear disseminating into both TradFi and Crypto markets.
To sum up, there are no definitive ways of pinpointing exactly why Bitcoin is down today. However, it can be said with some assurance that a combination of the above factors and events has affected the level of fear disseminating into both TradFi and Crypto markets.
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