Since hitting an all-time high of more than $73,000 in mid-March, Bitcoin (CRYPTO: BTC) has experienced increased levels of volatility and a significant correction. This sell-off can be attributed to various factors.
Most apparent is profit-taking by long-term holders. Data from the blockchain analytics platform Glassnode shows that after Bitcoin surged to its all-time high of more than $73,000, long-term investors seized the opportunity to capitalize on the record prices and realize profits. The scale of profit-taking was the largest since 2021.
Making matters worse, heightened geopolitical tensions in the Middle East, particularly between Israel and Iran, exacerbated market uncertainties. As geopolitical risks escalated, investors added to the sell-off by unloading Bitcoin holdings. With traditional markets closed over the weekend, Bitcoin remained the only accessible asset for trading. Consequently, panic from investors further fueled the sell-off.
Source Fool.com