March 19, 2024 8:32 AM | 1 minute read |
Bitcoin (CRYPTO:BTC) price plummeted on Tuesday morning, dropping below $63,000 and dragging the entire crypto market.
This sudden drop resulted in a total market capitalization drop of 8% within 24 hours.
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Analysts point to changes in investor sentiment as a potential trigger.
The Grayscale Bitcoin ETF, a major investment vehicle for institutional investors, saw significant outflows on Monday, data showed.
This outflow, combined with lower-than-usual inflows into other ETF products, suggests some investors may exit.
On-chain analytics firm CryptoQuant observed increasing selling pressure, likely due to short-term Bitcoin holders cashing in their profits.
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These are typically investors who hold their tokens for less than 5 months.
The decline spread beyond Bitcoin and affected other major cryptocurrencies as well.
Ethereum (Crypto: ETH), Solana (Code: SOL), BNB chain (cipher: BNB), and cardano (CRYPTO:ADA) all experienced significant declines of over 9%, according to CoinGecko data.
The meme coin sector, known for its high volatility and often fueled by social media hype, suffered even bigger losses.
Data shows an average reduction of more than 17%. dogwifat (cipher: WIF) and Flowki (CRYPTO: FLOKI) led the downtrend with a whopping 18% drop each.
Although Memecoin has generated impressive profits to date in 2024, its price fluctuations are notoriously unpredictable and susceptible to sudden fluctuations.
Read next: Dogwifhat Meme NFT auctioned off to mysterious trading legend for $4.3 million
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