Bitcoin has experienced a sharp decline from its March 14 high of over $73,600 to today’s low of under $60,800, translating to a -17% loss in value. This significant drop has prompted a flurry of activity on social media platforms, particularly X (formerly Twitter), where crypto experts have been fervently discussing the potential reasons behind this downturn and speculating on what the future holds for the world’s leading cryptocurrency.<\/p>\n
Alex Kr\u00fcger, a respected figure in both macroeconomics and crypto, was quick to identify the primary factors contributing to Bitcoin’s price collapse. According to Kr\u00fcger, the crash can be attributed to several key factors: excessive leverage in the market, Ethereum’s negative influence on overall market sentiment due to ETF speculations, a notable decrease in Bitcoin ETF inflows, and the irrational exuberance surrounding Solana memecoins<\/a>, which he refers to disparagingly as “shitcoin mania.”<\/p>\n Reasons for the crash, in order of importance <\/p>\n (for those who need them)<\/p>\n #1 Too much leverage (funding matters) — Alex Kr\u00fcger (@krugermacro) March 20, 2024<\/a><\/p><\/blockquote>\n\n
#2 ETH driving market south (market decided ETF not passing)
#3 Negative BTC ETF inflows (careful, data is T+1)
#4 Solana shitcoin mania (it went too far)<\/p>\n