Why is The Bitcoin (BTC) Price Down Today?

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The cryptocurrency market witnessed a sudden downturn as Bitcoin plummeted in value with the onset of Q2, triggering significant liquidations across the entire network. 

Continue reading this article to delve into the details of the flash crash and its market implications – 

Bitcoin Price Plunge 5%

Bitcoin, the leading cryptocurrency, experienced a sharp decline, dropping to as low as $66,000, while Ethereum briefly fell to $3,319. The sudden drop in prices led to massive liquidations. 

Bitcoin’s entire network witnessed a total liquidation of $157 million in the past hour alone, while long orders totaling $144 million accounted for the majority of liquidations. 

Overall, the global crypto market witnessed a sudden drop. Ethereum has fallen by 6.71% in the last 24 hours and Solana by 9.32, resulting in $92.26 million and $17 million, respectively. 

Shift To Memecoins

Interestingly, liquidity seems to flow from Bitcoin and other major altcoins into meme coins, which analysts have termed a ‘weird bull market.’ While Bitcoin, Ethereum, and Solana have shown heavy outflows, Memecoin’s total capitalization surged to $70 billion. 

This surge in capitalization is believed to be primarily driven by pumps in newly launched tokens such as ‘dogwifhat’ and ‘Book of Meme,’ along with older meme coins like Pepe and Bonk. 

Binance Labs Suspected of Selling Tokens

Meanwhile, Binance Labs has been suspected of selling some of its investment tokens amidst the sudden market crash. SpotOnChain reported a significant transfer valued at 9.33 million GMT tokens, equivalent to $3.14 million, moving from an address associated with Binance Labs to an address of Binance Deposit. 

Bitcoin Halving Effect

The fourth-ever Bitcoin halving is just 18 days from today’s flash crash! 

Bitcoin demonstrated seven consecutive monthly closes in the green, and the market sentiment remains cautious as BTC/USD levels dip to their lowest since March 25. Analysts closely monitor support levels, with potential retests of $67,200 looming if Bitcoin falls below the 200-period moving average on the four-hour timeframe.