Reasons Why Bitcoin Prices Have Continued to Drop Recently

In the past few weeks, the cryptocurrency market, especially Bitcoin, has witnessed a prolonged bearish trend. Below are the main reasons explaining this decline:

1. Strong selling activity from the “whales” According to on-chain data, over the past month, large wallets holding Bitcoin have sold more than 400,000 BTC. Such a large sell-off creates strong supply pressure on the market, causing the price of Bitcoin to drop significantly. When institutional or individual investors with large volumes start to take profits or offload their holdings, the market often experiences a temporary imbalance, leading to widespread downward momentum.
2. The tightening monetary policy from the Federal Reserve (Fed) The Fed Chairman – Jerome Powell – recently made a “hawkish” statement, suggesting that interest rates may not be cut in December. This has led investors to believe that cheap money will not return anytime soon, reducing the level of enthusiasm and risk appetite in investment markets, including the cryptocurrency market.
3. The fall of the global stock market Not only cryptocurrencies, but the global financial market is also undergoing a correction phase. Major indices in the US, Europe, Japan, and South Korea have all recorded declines over several consecutive sessions. As risk appetite diminishes globally, Bitcoin – which is considered a high-speculation asset – is also negatively affected and follows the overall downward trend of the market.
4. Capital flows out of spot Bitcoin ETF funds In the last 5 consecutive days, Bitcoin spot ETF funds have recorded outflows of over 1.5 billion USD. The withdrawal of funds by investors from ETF funds indicates an increasing caution, while also reducing institutional buying pressure on Bitcoin. This is an important factor that continues to exert downward pressure on the price. Summary The combination of the above factors – from the profit-taking activities of “whales”, tight monetary policies, negative trends in global securities to the withdrawal of capital from ETF funds – indicates that the market is in a healthy but quite sensitive adjustment phase to macro news. Investors need to closely monitor the developments of the Fed, institutional cash flows, and market sentiment to assess the next trend of Bitcoin.