Why Bitcoin Price is Down Today?

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The total cryptocurrency market cap slipped over 3 percent to about $2.59 trillion, led by Bitcoin (BTC) which dropped below $68k to trade around $67,600 on Tuesday. Out of the $164 million rekt in the crypto derivatives in the past 24 hours, more than $140 million involved long traders. 

Amid the heightened volatility, more cryptocurrency traders have since taken refuge in the stablecoins market.

According to the latest crypto oracles, the daily average traded volume for Tether USDT, around $47 billion, was more than that of Bitcoin and Ethereum combined.

Top Reasons Bitcoin Price Dropped Today 

Upcoming US High Impact News on Inflation

On Wednesday, the United States Bureau of Labor Statistics will release the much-anticipated data on the Consumer Price Index (CPI). Later on Wednesday, the United States Federal Reserve will release the FOMC statement, FOMC economic projections, and benchmark interest rates.

While the general consensus is for a hold in the US interest rates, the European Central Bank (ECB) and the Bank of Canada recently lowered their respective interest rates.

With the past FOMC data having triggered heightened crypto volatility, more traders have opted to watch from the sidelines.

High Resistance at $72k 

In the past four months, Bitcoin price has faced an immense resistance level of around $72k despite the notable demand from institutional investors. From a technical standpoint, Bitcoin price could be forming a typical head and shoulders (H&S) pattern on the weekly time frame. 

Coupled with the bearish weekly divergence on the Relative Strength Index (RSI), Bitcoin price is faced with an uphill battle in the coming months. 

Nonetheless, Bitcoin bulls have the upper hand backed by the recent halving event, clearer crypto regulations, and heightened mass adoption.

Spot BTC ETFs Net Inflows Turned Negative 

After more than two weeks of positive cash inflows, United States-based spot Bitcoin ETFs, which currently hold over 1 million coins, registered a net outflow on Monday. According to spot ETF data, BlackRock only registered a cash inflow of about $6.3 million on Monday.