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The largest and most popular cryptocurrency globally is still Bitcoin (CCC: BTC-USD). As the world’s leading token, investors have reason to keep a close eye on this cryptocurrency.
In many ways, Bitcoin’s action drives the entire cryptocurrency market. As many will possibly notice, when Bitcoin sneezes, the entire market catches a cold. That turns out to be the case today.
In the last 24 hours, Bitcoin has fallen more than 5%, at the time of writing. This movement coincides with the value action of the entire market. This is no, Bitcoin still accounts for about 40% of the overall crypto market.
It turns out that there are some points that are driving investors’ interest in moving away from dicy assets like Bitcoin and turning to safer assets today.
First, Bitcoin has noticed the effects (again) that leverage can have on cryptocurrency values. Today a crypto futures sale and a large settlement were noticed, as the spot value of Bitcoin fell. This implies that leveraged positions in futures contracts continue to drive the value dynamics of the underlying token.
In the burden, aversion to threats and capital flows into more defensive asset categories seem to be taking hold today. Investors seem less willing to carry threats, opting to withdraw cash from the crypto market at a time when crypto costs are near all-time highs. It is unclear whether this is a profit taking or an intelligent and outdated control of the portfolio. However, it turns out that this feeling of threat aversion over the more than two months is something investors will need to keep an eye on the future.
The Post Crypto News: Why Has Bitcoin Fallen Today?It first appeared on InvestorPlace.