Why Bitcoin crashed 📉

Analysts unpack Bitcoin's recent dive, and while BTC is rising again, they caution that there could be more pain ahead.

📝 What you need to know

Bitcoin is starting to make up ground Monday after last week’s disastrous dive, which took the coin to a seven-month low of about $81,000. But the carnage is barely in the rear view mirror, and even with the price of BTC back above $88,000 as of this writing, it’s worth unpacking what happened—and why the damage may not be done.

Deutsche Bank analysts broke down five key factors that explain why Bitcoin has cratered from an all-time high above $126,000 in a little over a month—including growing risk-off macro sentiment, long-term investors taking profits, and waning institutional interest. And continued uncertainty around the Federal Reserve’s moves could drive further declines, the analysts said.

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