Bitcoin Dips Below $62,000 in Major One-Day Loss

On Tuesday, Bitcoin experienced its most substantial one-day downturn since the downfall of FTX in November 2022, with its value plummeting over 8% in a single day. This decline was mirrored by a significant reduction in investor interest in U.S.-listed spot Bitcoin ETFs, suggesting a possible connection between the two events.

The price of Bitcoin, the most valued cryptocurrency on the market, dipped below $62,000 according to CoinMarketCap, marking its steepest drop within a 24-hour frame since the FTX crisis on November 9, 2022, when it nosedived more than 14% due to the bankruptcy of Sam Bankman Fried’s FTX, then the third-largest exchange.

Among the speculated causes for this downturn are excessive leverage within the market, the downward pressure from Ethereum (ETH), and notably negative inflows into Bitcoin ETFs.

This recent decrease sees Bitcoin retracting 15% from its peak above $73,500 observed just the previous week.

Contributing to Bitcoin’s precipitous fall could be the withdrawal of funds from spot ETFs linked to the cryptocurrency. Records indicate that Tuesday saw an unprecedented exodus of $326 million from these funds, the largest ever recorded. Moreover, Grayscale’s ETF experienced a significant withdrawal of $643 million on Monday.

At time of writing, Bitcoin is trading at $63,124 as per CoinMarketCap.