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Why is Bitcoin Falling? Here are the Factors that Brought the Price to the Lowest Level in 3 Months! - Coin Bulletin
Bitcoin (BTC) price fell to $86,800, its lowest level in three months, as losses in Nasdaq futures and the strengthening of the Japanese yen.
The sharp declines in the cryptocurrency market in recent days have pushed the price of Bitcoin (BTC)** down to $86,800. BTC, which fell below the $89,000 level in the morning, continued its decline with ongoing selling pressure and negative economic signals. In particular, the 0.3% decline in Nasdaq futures and the strengthening of the Japanese yen against the US dollar turned investors away from risky assets.
Market dominated by risk avoidance
The cryptocurrency market has been negatively affected by the escape from risk in traditional markets. The downtrend in Nasdaq futures for the past three days and the rise of the Japanese yen to 149.38 levels pushed investors to seek safe havens. This situation has particularly put pressure on Bitcoin and other cryptocurrencies.
On the other hand, the rejection of three separate proposals for state-level acceptance of Bitcoin reserves in the United States has revived the political risks to the cryptocurrency market. According to BRN analyst Valentin Fournier, the rejection of these proposals by the states of Montana, North Dakota and Wyoming showed that uncertainty persists in the United States' cryptocurrency policies.
The decline in global money supply has been effective
Experts have associated the weakness of Bitcoin with the decrease in global money supply. Biwise Europe Research Director Andre Dragosch stated on social media platform X, "There is a lag relationship between global money supply and BTC price. The bottoming out of money supply indicates that this decline in Bitcoin prices may not last long."
Finally, it was reminded that the strengthening of the Japanese yen in the past also led to similar waves of risk aversion. Last July, the rapid rise of the yen caused the Bitcoin price to drop from $65,000 to $50,000 within a few days.