Bitcoin Sees Steep 7.5% Intraday Drop, Showcasing Ongoing Volatility Despite 150% Yearly Gains
• Bitcoin dropped 7.5% Monday, its steepest intraday drop since August. It's still up 150% this year, showing its volatility.
• Bitcoin was climbing due to reduced regulatory uncertainty, the upcoming halving, and potential for an SEC-approved Bitcoin ETF.
• Macroeconomic factors like rising gold prices and potential lowered interest rates in 2023 also contributed to Bitcoin's rise.
• The flash crash's cause is uncertain, but may be due to profit-taking, overheated derivatives market funding rates, or overleveraged trader positions being liquidated.
• The crash wiped out excess leverage and speculation, bringing the market to healthier levels. It's a lesson in crypto's volatility.