What caused the drop in cryptocurrency today? The commencement of capital outflows
The cryptocurrency market experienced a significant decline, with Bitcoin dropping close to the $66,000 level. CoinGecko data reveals that the global crypto market capitalization decreased by 4.6% in the past 24 hours, currently standing at $2.63 trillion. However, the daily trading volume saw a 42% increase, reaching $134.77 billion.
This marketwide decline can be attributed to the leading cryptocurrency, Bitcoin, which saw a drop from $70,000 to $66,400 in the last 24 hours. Bitcoin’s market cap is currently around $1.3 trillion, with a trading volume of $40 billion.
In addition, Bitcoin ETFs experienced a net outflow of $85.7 million on April 1, as reported by Farside Investors. Last week, these investment products had a total inflow of $862 million.
On March 31, Tether, the company behind the largest stablecoin, purchased 8,888 Bitcoins for $618 million, with an average price of $69,531 per coin. Currently, the firm holds over 75,000 BTC at an average price of $30,305.
There has been speculation among investors and social media users regarding whale manipulations and the idea of buying the dip. Santiment data shows a significant increase in calls for “buy the dip” in the past 24 hours, accounting for 33.55% of the total social volume surrounding crypto-related topics. The majority of these conversations can be found on Reddit and 4chan.
Conversely, discussions about a potential selloff only make up 2.46% of the total conversations and posts.
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