- Bitcoin fell by over 8% on Tuesday, continuing a sharp pullback from its new ATH.
- Tuesday’s crash marked BTC’s biggest single-day collapse since November 2022.
- Several factors influenced Bitcoin’s recent crash, including significant ETF outflows.
Bitcoin continued falling from the recently achieved all-time high (ATH), with a massive drop on Tuesday. The flagship cryptocurrency fell by over 8% to close trading at $61,897 after opening the day at $67,603.
Tuesday’s price crash marked BTC’s biggest single-day collapse since the collapse of FTX in November 2022. Bitcoin tanked by 14% on November 9, 2022, as Sam Bankman-Fried’s FTX went bankrupt.
Meanwhile, Peter Schiff, a well-known Bitcoin skeptic, has used the opportunity of the latest BTC crash to expose a perceived weakness in Bitcoin ETFs. Schiff posted on X explaining a trading dimension that the newly launched spot Bitcoin ETFs introduced that could limit investors’ participation.
According to Schiff, one problem with owning Bitcoin in an ETF is the limitation of liquidity to the U.S. market hours. He explained that ETF holders cannot sell their holdings immediately when the market crashes overnight. They would have to wait until after the U.S. market opens for trading. Hence, he thinks it could be frustrating for investors to watch the market crash helplessly with no ability to get out.
Bitcoin traded for $63,234 at the time of writing, having pulled back nearly 18% from last week’s $73,795 ATH, according to data from TradingView. Several factors catalyzed the latest price crash, including outflows from the spot ETFs.
Alex Kruger, a renowned trader and economist, highlighted four reasons behind the BTC crash. They include too much leverage among traders, traders’ suspicion that the SEC will reject an Ethereum ETF, negative BTC ETF inflows, and Solana shitcoin mania.
Ethereum, the second-largest cryptocurrency by market cap, peaked at $4,095 in the recent bull run. However, it has pulled back following last week’s Dencun Upgrade and traded for $3,229 at the time of writing. The pullback reflects a 25% drop from the recent high, per TradingView data.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
