Viewpoint: BTC has recorded its largest single-day drop since the FTX collapse, with capital outflow from spot ETFs being one of the main reasons

2024-03-20 13:44:15

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ChainCatcher news, according to CoinDesk, TradingView data shows that BTC fell more than 8% on Tuesday, marking the largest single-day drop since November 9, 2022. On that day, BTC plummeted over 14% due to the FTX collapse.

The latest market data shows that BTC briefly fell below $61,000, having retreated 17% from its recent all-time high of over $73,500. The CoinDesk 20 index dropped 16% during the same period.

Trader and economist Alex Kruger stated that the recent price drop of BTC was catalyzed by several factors, including outflows from spot ETF funds. Kruger posted on the X platform, stating: "The reasons for the collapse, in order of importance: 1. Excessive leverage; 2. Ethereum driving the market down (the market believes its spot ETF has a low probability); 3. Negative inflows for Bitcoin ETF (T+1); 4. Frenzy of junk coins on Solana."

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