Bitcoin has plunged deeper into a bear market, with a 22% drop from its peak in early October. The sell-off intensified, hitting a six-month low of $94,700 on Friday. Three factors contributed to this: wider sell-off in risk assets, decreased liquidity, and rumors of Strategy offloading Bitcoin holdings.

Outflows from spot bitcoin ETFs reached $866.7 million, the highest since early August. Bitcoin’s liquidity decreased over the past month, with market depth falling from $766 million to $535.2 million. Strategy’s founder refuted rumors of selling Bitcoin, but the market remains wary.

The current state of Bitcoin reflects market sentiment towards risk assets. High valuations, decreased liquidity, and market rumors have fueled the sell-off. This volatility highlights the influence of market sentiment on cryptocurrency value. Strategy’s moves are closely monitored, adding uncertainty to Bitcoin’s future.

Read more at Yahoo Finance: Bitcoin Tumbles Deeper Into Bear Territory, Hard-Won Rally Could Be On Verge Of Vanishing