Bitcoin Drops Below $60,000 – What’s the Reason Behind the Decline?

Bitcoin, the leading cryptocurrency, failed to withhold the $60,000 support level and experienced a notable decline.

Several factors contributed to this dip, with the most significant being the hotter-than-expected inflation data from the US. This development could either slow down the Federal Reserve’s rate-cut plans or lead to smaller reductions.

Additionally, the SEC’s legal action against cryptocurrency firm Cumberland, accusing it of selling unregistered securities, added further pressure.

The recent removal of legal hurdles surrounding the sale of Bitcoin seized from the Silk Road case also played a role.

The price drop triggered a wave of liquidations, with approximately $50 million wiped out in the last hour, $49 million of which were long positions.

In the past 24 hours, liquidations reached $231 million, with $203 million in long positions. Bitcoin saw the highest liquidation amount, totaling $72 million.