There are a few possible reasons for the decline in Bitcoin today.
- The Evergrande crisis: The Evergrande crisis is a major event that is having a ripple effect through the global financial system. Bitcoin is not immune to this, and the decline in Bitcoin prices could be a reflection of the uncertainty caused by the crisis.
- Rising interest rates: The US Federal Reserve is expected to raise interest rates in the coming months in an effort to combat inflation. This could make Bitcoin less attractive to investors, as it is a relatively risky asset.
- Liquidation of derivative contracts: Bitcoin prices also declined due to the liquidation of derivative contracts. This is when traders are forced to sell their Bitcoin holdings to cover their losses.
- Technical factors: Bitcoin prices are also subject to technical factors, such as the Fibonacci retracement level. The Fibonacci retracement level is a popular technical indicator that is used to identify potential support and resistance levels. The 0.5 Fibonacci retracement level is currently at $20,000, and it is possible that Bitcoin prices could fall to this level before recovering.
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