Why Did The Bitcoin (BTC) Price Drop?

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Bitcoin has been in an uptrend for the past week or so. However, it has dropped a bit today. While some estimates have been made as to the cause of the decline, the most notable guess It came from Vetle Lunde, senior analyst at K33 Research.

The reason for the decrease in Bitcoin price may be the Bitcoin purchase made by the MicroStrategy giant earlier today. The company founded by Michael Saylor has expanded its BTC holdings, spending about $347 million to purchase 12,333 coins. The giant company already has 152,333 BTC.

MicroStrategy is a software company that took a keen interest in Bitcoin under the leadership of its founder, Michael Saylor. The company has decided to allocate some of its institutional reserves to Bitcoin. This situation had a great impact in the crypto money world and affected many investors. While MicroStrategy is pursuing a strategy of channeling their own capital into Bitcoin, many investors have seen this move as a positive sign and increased their confidence in Bitcoin. However, the effect of these large purchases on the price was generally negative.

In March and April, when previous purchases were made, the BTC price also fell by 5% that day. The last purchase was the company’s largest purchase of BTC so far in 2033. Previously, in March and April, MicroStrategy bought 7,500 BTC in total.

After falling from the $30,452 level, Bitcoin is trading at $30,136 at press time.

Finally, the technical factors seen in the market may also have contributed to the price drop. Technical analysis is an approach where traders shape their decisions based on price charts and indicators. Many traders can push the price down by placing sell orders at certain price levels or create selling pressure following the downtrend. This may cause a decrease in price.

You can follow the current price action here.


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