Why BTC Plunges To $40K? Here are 4 reasons!

<p>&nbsp;"Last night there must have been a lot of people who were surprised, didn't you do something that was detrimental when the BTC price fell?"</p><p><br /></p><p>Cryptocurrency king Bitcoin (BTC) overnight gave investors a thrill when its price plummeted to $40,755 after climbing nearly $46,000 on January 2, 2023 to reach its highest level since April 2022.</p><p><br /></p><p>The fall in BTC prices was triggered by the crypto-focused financial services platform Matrixport which predicted that the Securities and Exchange Commission (SEC) would reject BTC ETF spots again in January 2024.</p><p><br /></p><p>Therefore, many investors are of the view that the price of the digital asset will see a drastic decline to $36,000 or lower.</p><p><br /></p><p><br /></p><p>The chain of miners' block rewards will decrease immediately after the BTC halving event takes place, those who need to save costs but want to make a profit have taken advantage of the price increase by selling part of their BTC holdings.</p><p><br /></p><p>Last night, someone warned that a large mining firm had deposited a lot of BTC into crypto exchanges as the price headed towards $46,000, but please note this is usually followed by selling.</p><p><br /></p><p>In addition, the Fear and Greed Index which has risen above 70 has shown that investors are becoming quite greedy and this is one of the reasons why BTC prices have fallen again after Warren Buffett once said to be afraid that other people are greedy.</p><p><br /></p><p>Not only that, the decline in BTC prices also occurs when more than $577.7 million in long positions have been liquidated across the crypto market, where $554.5 million was written off in the previous 24 hours when long derivative positions were liquidated without buying pressure compared to trading volume.</p><p><br /></p><p>As of this writing, the price of BTC had plunged 4.69% to $42,897 in the last 24 hours with market capital of $840 billion and recorded a decline of 1.65% over the past week.</p>