Bitcoin's price has experienced a decline of over 2.5% in the past 24 hours, dropping to $83,400 as worries about tariff impacts continue to dampen investor confidence. The drop in price is attributed to various factors affecting the cryptocurrency market.

One significant factor contributing to Bitcoin's decline is the sluggish institutional demand as spot Bitcoin ETF flows have turned negative. Spot Bitcoin exchange-traded funds have been a key driver of institutional interest in Bitcoin, but recent data shows a decrease in demand. Between March 28 and April 15, spot Bitcoin ETFs saw net outflows totaling $964 million, indicating a weakening interest from institutional investors.

The negative inflows into spot BTC ETFs signify a decrease in fresh capital entering the market, leading to a reduction in buying pressure and a subsequent decline in prices as supply surpasses demand. Analysts are closely monitoring this trend as a persistent outflow could exacerbate the correction in Bitcoin's price.

Additionally, the absence of bullish sentiment from Bitcoin bulls has also contributed to the bearish market sentiment. The Bull Score Index, which measures Bitcoin's market health, has been in a bearish territory for an extended period, indicating a decline in bullish momentum. This prolonged bearish trend is reminiscent of previous market downturns and could signal further price declines.

Furthermore, large investors' accumulation of Bitcoin has weakened, with whale holdings decreasing by approximately 30,000 BTC over the last seven days. The slow pace of accumulation suggests a lack of bullish conviction among investors, leaving Bitcoin vulnerable to sell-offs as speculative traders react to market conditions.

Technical analysis shows that Bitcoin's price faces resistance at the 50-day and 200-day simple moving averages, which have capped the cryptocurrency's recent recovery attempts. The next support level to watch is at the $80,000 psychological level, with further support at the $74,400 range low and the $76,600 low from previous months.

In conclusion, the current market conditions point to a challenging period for Bitcoin, with various factors contributing to the downward pressure on prices. Investors and traders are advised to conduct their own research and exercise caution when making investment decisions in the volatile cryptocurrency market.

Source: https://cointelegraph.com/news/why-is-bitcoin-price-down-today?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound