"Experts Analyze Bitcoin's Price Drop: 'The Market Has Become Highly Volatile'"
Bitcoin Bear Market: Bitcoin has entered a bear market, losing 21% of its value since reaching an all-time high of $126,200 on October 6, marking the first losing October for investors in seven years.
Market Sentiment and Liquidations: The sentiment index has dropped to its lowest level since April, and a significant sell-off on October 10 led to the largest long liquidation in Bitcoin futures history, creating a precarious market environment.
Impact of External Factors: The decline in Bitcoin prices is influenced by broader market conditions, including tech stock valuation concerns, uncertainty regarding the Federal Reserve's interest rate plans, and the potential US government shutdown.
Investor Behavior: As both stocks and Bitcoin fell, some investors sold their Bitcoin holdings to mitigate losses in the stock market, reflecting a shift in risk appetite amid ongoing market volatility.
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