Turbulence in Crypto Markets: Declining Bitcoin Price Matches Rising BTC Mining Difficulties

Redaksi PetiknetSaturday, 22 April 2023 | 06:56 WIB
Penurunan Bitcoin Tepat dengan Lonjakan Pertambangan BTC
Penurunan Bitcoin Tepat dengan Lonjakan Pertambangan BTC

PETIK.NET - The turbulence in the market has recently intensified, as () plunged below $28,000, marking a drop of more than 9% from the previous 90-day high of $31,005 on April 14.

As of April 20, was hovering around $28,044, leaving investors and traders to ponder the factors that led to this drop.

Amid this price drop, difficulty has soared to a historic high, creating an interesting contrast and worthy of further exploration.

BTC 24-hour price chart | Source: CoinMarketCap
BTC 24-hour price charts | Source: CoinMarketCap

Factors Behind BTC Drop

Disappointing first-quarter earnings in equity markets, including Tesla's, have impacted various sectors, causing the S&P 500 and Nasdaq Composite to fall 0.6% and 0.8%, respectively.

Due to its interrelated nature, poor first quarter earnings in equity stocks could trigger a free fall in Bitcoin prices.

A downturn in traditional markets may make investors more inclined to be risk averse, impacting the demand for cryptocurrencies.

The domino effect and the correlation between stock and prices can reduce the value of Bitcoin.

In addition, investors who suffer losses may sell their BTC assets, which could exacerbate the downturn.

With less income to invest in riskier assets, reduced capital flows could amplify downward pressure on the Bitcoin price.

As a result, investors are taking a more pessimistic view of Bitcoin's near-term price, with a surge in demand for short-term downside protection.

Mining Difficulty and Highest Hash Rate

Despite the bear market sentiment, Bitcoin difficulty has risen by 1.72% to a record high of 48.3T.


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The information provided in this article is for informational purposes only and should not be considered as financial or investment advice. Cryptocurrency investments are subject to market risks, and readers should exercise caution and do their due diligence.