#Why Did Bitcoin Experience a Significant Drop?
Bitcoin experienced a substantial decrease of 2% on Thursday, approaching $66,000 by midday. This decline affected the broader cryptocurrency market negatively.
Ethereum was trading close to $1,900, while Solana saw a drop to $78. XRP maintained its position at $1.35. The cryptocurrency market presented a mixed bag, with various altcoins showing losses while others experienced slight gains.
This downward trend resulted in liquidations exceeding $80 million in just the past hour, totaling over $280 million within a 24-hour timeframe, according to data from Coinglass. Additionally, the open interest in Bitcoin positions across exchanges has fallen to its lowest level since November 2024, sitting now at $45 billion.
#What Factors Contributed to the Recent Market Pressure?
The recent pressure on the crypto market followed a downgrade from Standard Chartered regarding their short-term and full-year forecasts for cryptocurrencies. The bank predicts Bitcoin could sink to around $50,000 in the upcoming months, with Ethereum potentially dropping to $1,400. Analysts at the bank suggested that ongoing sell-offs may continue, as investors in exchange-traded funds (ETFs)—many of whom are currently facing losses—are likely to exit their positions rather than seize the opportunity to buy at lower prices.
Furthermore, Standard Chartered revised its end-of-year estimates significantly, reducing Bitcoin's target from $150,000 to $100,000, Ethereum from $7,500 to $4,000, Solana from $250 to $135, and BNB Chain from $1,755 to $1,050.
#How Are Broader Markets Responding?
In addition to the decline in the cryptocurrency space, broader markets also saw pullbacks. The S&P 500 indices fell nearly 1% while the Nasdaq composite experienced a decline of 1.7%. The sell-off trend extended to metals as well, with gold experiencing a drop of 2.4%, now priced at $4,960, while silver plunged by 9%, settling at $76.