Why Is Bitcoin (BTC) Down Today? (2024)

Bitcoin dominates the cryptocurrency landscape and is widely known among crypto investors. As the largest cryptocurrency in the world, it achieved a new all-time high of $73,750 on March 14, 2024. However, BTC has been undergoing corrections for some time now. As of May 27, 2024, it is trading at $68,630 with a market capitalization of $1.35 trillion, marking a 6.95% decline from its peak. Bitcoin has seen a 0.93% drop over the last 24 hours but increased by 2.63% in the last seven days.

Let’s delve into the current state of the Bitcoin market and the reasons behind the sudden price dip.

How is Bitcoin Performing June 2024?

Bitcoin is currently down as investors fear the S&P 500 might have topped. The prices coincided with the S&P 500 futures after it peaked at an all-time high of 5,368 points in the last week. This led to a surge in the dollar, which has, in turn, put pressure on assets like cryptocurrencies.

The anticipation of the U.S. Securities and Exchange Commission’s (SEC) final decision on the spot ether ETFs was also a factor in the BTC dip. Although it has been approved by the SEC, there has been no significant change in the prices of Bitcoin. The price performance of Bitcoin in the last 24 hours is $68,183 (low) and $69,506 (high).

The value of Bitcoin had declined around 19.59% from its peak of $73,750, with BTC dropping below $60,000 in the first week of the month. Currently, the markets are grappling with regulatory exploration, with the Securities and Exchange Commission’s renewed vigor against significant players in the crypto world like Consensys.

On the other hand, the hype is cooling around the Spot Bitcoin ETFs. Blackrock ETF experienced outflows for the first time since it began trading in January, with nearly a net $36.9 million leaving the fund. This indicated that even institutional investors are not immune to market sentiments and Fear, Uncertainty, and Doubt (FUD).

Rajagopal Menon, Vice President of WazirX, a major crypto exchange in India, states that ” economic indicators present a mixed bag: the FOMC’s recent stance suggests a cautious approach towards rate hikes, with persistently high inflation adding a layer of uncertainty. Additionally, markets are on the edge concerning Japan’s economic situation, adding to the uncertainty.

However, Bitcoin’s resilience during these times is notable. Technical analysis indicates that Bitcoin is priming for a significant upward move, finding strong support at crucial levels and showing patterns on the RSI that historically precede major rallies”

Additionally, he says, analysts are unanimous that the current market conditions might be a precursor to a major bull run, potentially propelling Bitcoin toward previous all-time highs. This is bolstered by a significant accumulation of whales and exchanges, creating a supply shock likely to drive prices upwards. For investors, the advice is to remain patient, systematically invest at these levels, and stay focused on the long-term potential of Bitcoin.

Parth Chaturvedi, Investment leads at CoinSwitch Ventures, says that BTC as an asset class doesn’t trade in isolation and is affected by macroeconomic factors. With U.S. inflation higher than expected, investors are rebalancing their positions for higher interest rates for longer. This doesn’t bode well for risky asset classes and adversely impacts crypto prices. Besides this, BTC prices have almost doubled since Jan on the back of Spot ETF inflows and the halving event. The downturn in prices was amplified by profit booking as well.

Bitcoin Price Movement (One-Month Data)

As of May 27, 2024:

Source: CoinMarketCap

Bitcoin set a new record of $73,750 on March 14, 2024, with a market capitalization of $1.44 trillion. Following this record, it experienced a dip, and the market is currently undergoing a correction. The market sentiment shifted from extreme greed to greed.

Over the past week, Bitcoin has experienced a 2.61% increase, down by 6.95% from its all-time high. As of May 27, 2024, BTC is trading at $68,677 with a market capitalization of $1.35 trillion.

Why Does Bitcoin Fluctuate?

The start of this year saw a surge in Bitcoin prices, with the cryptocurrency surpassing its all-time high multiple times in March 2024, reaching as high as $73,750. However, in the last one month, BTC prices dropped below $60,000. As of May 27, it is trading at $68,677, marking a 6.95% decrease from its all-time high.

The overall cryptocurrency market, including Bitcoin, has experienced price fluctuations due to unforeseen macroeconomic headwinds and the recent impact of Spot ETH ETFs. Let’s explore other factors that have contributed to the fluctuation in Bitcoin prices:

• U.S. SEC approves spot ethereum ETFs.

• Federal Reserve’s interest rate decision.
• Spot Bitcoin ETFs.
• Post-Russia-Ukraine war effects.
• Instability in the U.S. banking system.
• Fear of inflation worldwide.
• High interest rates in the U.S. and the UK.
• Collapse of the largest crypto exchange FTX.

Tips To Consider Before Investing In Bitcoin

Investing in cryptocurrencies is a very appealing concept to people. When it comes to cryptocurrency, Bitcoin is a must-must investment, but you need to consider some tips before you go ahead and invest in Bitcoin.

• It is advisable and smart to invest 5% to 10% of your overall portfolio in Bitcoin.
• Treat your cryptocurrencies as a long-term investment plan.
• Analyze the market volatility of Bitcoin and then invest wisely.
• To maximize your returns, research thoroughly the best times to purchase and sell Bitcoin.

It is natural for you to wonder whether Bitcoin is a safe investment choice, considering its instability and volatility. The entire value of Bitcoin is based on speculation, and it is not a regulated form of investment like mutual funds or equities. It would be a great choice to consult a financial advisor who will guide you through the process of investing in cryptocurrency that best suits your financial goals.

Once you have a hold and a bit of understanding of cryptocurrency and are ready to invest in Bitcoin, the next thing you need to know is how to buy Bitcoin from India:

Step 1: Choose your crypto exchange and create a free account through their web portal or an application.

Step 2: Register and verify your identity via their platform.

Step 3: You will see a “BUY” tab, which has many cryptocurrencies associated with it. To buy Bitcoin, click the link attached to it.

Step 4: Buy Bitcoin through the link and select any mode of payment, such as credit or debit card, net banking, or adding funds in the form of INR.

Step 5: Once you make the payment and purchase bitcoin, it will be stored in your exchange account or personal digital wallet. You can sell it anytime you wish or simply trade it for other cryptocurrencies. You can also stake it to obtain passive income.

Bottom Line

Investing in Bitcoin, particularly from India, is not as simple as it seems due to the Indian government’s active interest in regulating the crypto market and discouraging investment. If you are determined to invest despite regulatory concerns, ensuring that you haven’t allocated all your savings and are adequately diversified is essential. Conducting thorough research and monitoring cryptocurrency trading globally can help you mitigate risks effectively.