1. Why has the price of Bitcoin fallen recently?
Bitcoin’s recent decline from around $126,000 is due to global economic uncertainty, profit-taking and overleveraged positions that led to $19 billion in liquidations.
2. How do Bitcoin ETFs affect the market?
Bitcoin ETFs initially boosted prices with strong inflows, but recent downturns and slight outflows have weakened demand, contributing to bearish momentum.
3. Is this the start of a long-term bear market in cryptocurrencies?
Not necessarily. Even though short-term sentiment is bearish, long-term fundamentals like adoption and institutional interest continue to support a potential recovery.
4. What role do ETFs play in Bitcoin price action?
ETFs serve as gateways for institutional money. When inflows increase, they support price increases; when outflows increase, they add selling pressure on Bitcoin.
5. What factors could help Bitcoin recover?
A sustainable recovery could come from renewed ETF inflows, lower interest rates, positive macroeconomic signals and increased accumulation of long-term holders.
