Bitcoin prices fall more than 7% as cryptocurrency market expected to remain volatile

Chris Benson
·2 min read
The price of Bitcoin on Tuesday fell more than 7% for the second day. File Photo by John Angelillo/UPI
The price of Bitcoin on Tuesday fell more than 7% for the second day. File Photo by John Angelillo/UPI

April 2 (UPI) -- The price of Bitcoin on Tuesday fell more than 7% for the second day, going below the cryptocurrency's $65,000 price point.

By Monday, the cryptocurrency was trading nearly at $70,000 before data was released that showed strong growth in the manufacturing sector in its first since Sept. 2022.

The drop in price on Monday -- historically known to be a bad week for Bitcoin price -- fell an average of 8.33% from an all-time high on March 15.

While Bitcoin's trading volume -- which must sustain a value of $65,000 -- saw an increase of over 75% during the day to roughly $46 billion.

The Asian Bitcoin market fell under $66,500 during local time hours.

The Bitcoin logo is displayed on a screen in Times Square when Coinbase Global Inc. began trading under the symbol COIN at the Nasdaq Opening Bell in New York City in April 2021. File Photo by John Angelillo/UPI
The Bitcoin logo is displayed on a screen in Times Square when Coinbase Global Inc. began trading under the symbol COIN at the Nasdaq Opening Bell in New York City in April 2021. File Photo by John Angelillo/UPI

If Bitcoin did go under the $65,000 price mark, the possibility exists that nearly $250 million in long-leveraged position could be liquidated across all cryptocurrency exchange platform.

Observers say Bitcoin's price shift possibly can be attributed to a large holder of bitcoin -- also called a "whale" in the industry's terminology -- who moved at least 4,000 bitcoin to an exchange sometime Monday night.

Certain stocks that were tied to bitcoin also saw a drop in stock value while Bitcoin is still up nearly 53% so far for the year.

"Bitcoin doesn't need much excuse to go through a period of correction after such an explosive performance in Q1," Joel Kruger, a market strategist at LMAX Group, told CNBC.

"Having said that, U.S. economic data has been stronger of late, all while inflation continues to be a concern. This has resulted in a repricing of Fed expectations, translating to broad-based U.S. dollar demand on the more attractive U.S. dollar yield differentials," Kruger added.

For new Bitcoin investors, the move from $40,000 to $65,000 "potentially signifies an over 50% return in as little as 60 days," Andrey Stoychev, the head of Prime Brokerage at Nexo, told Cointelegraph.

Stoychev said it is "a sure profit-taking signal in the investment world," adding that it is "important to remember that market corrections are part of every market dynamic."

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