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Bitcoin prices fall more than 7% as cryptocurrency market expected to remain volatile

By Chris Benson
The price of Bitcoin on Tuesday fell more than 7% for the second day. File Photo by John Angelillo/UPI
1 of 2 | The price of Bitcoin on Tuesday fell more than 7% for the second day. File Photo by John Angelillo/UPI | License Photo

April 2 (UPI) -- The price of Bitcoin on Tuesday fell more than 7% for the second day, going below the cryptocurrency's $65,000 price point.

By Monday, the cryptocurrency was trading nearly at $70,000 before data was released that showed strong growth in the manufacturing sector in its first since Sept. 2022.

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The drop in price on Monday -- historically known to be a bad week for Bitcoin price -- fell an average of 8.33% from an all-time high on March 15.

While Bitcoin's trading volume -- which must sustain a value of $65,000 -- saw an increase of over 75% during the day to roughly $46 billion.

The Asian Bitcoin market fell under $66,500 during local time hours.

If Bitcoin did go under the $65,000 price mark, the possibility exists that nearly $250 million in long-leveraged position could be liquidated across all cryptocurrency exchange platform.

Observers say Bitcoin's price shift possibly can be attributed to a large holder of bitcoin -- also called a "whale" in the industry's terminology -- who moved at least 4,000 bitcoin to an exchange sometime Monday night.

Certain stocks that were tied to bitcoin also saw a drop in stock value while Bitcoin is still up nearly 53% so far for the year.

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"Bitcoin doesn't need much excuse to go through a period of correction after such an explosive performance in Q1," Joel Kruger, a market strategist at LMAX Group, told CNBC.

"Having said that, U.S. economic data has been stronger of late, all while inflation continues to be a concern. This has resulted in a repricing of Fed expectations, translating to broad-based U.S. dollar demand on the more attractive U.S. dollar yield differentials," Kruger added.

For new Bitcoin investors, the move from $40,000 to $65,000 "potentially signifies an over 50% return in as little as 60 days," Andrey Stoychev, the head of Prime Brokerage at Nexo, told Cointelegraph.

Stoychev said it is "a sure profit-taking signal in the investment world," adding that it is "important to remember that market corrections are part of every market dynamic."

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