The crypto market faced an unexpected downturn on April 12, resulting in Bitcoin and other major digital assets suffering notable losses. Bitcoin, which had been relatively stable recently, dropped below $67,000 for the first time in over a week.

Following this sudden drop, the crypto market saw nearly $900 million in liquidations within a day, with leveraged Bitcoin and Ether positions bearing the brunt of the losses, as per Futures market data from Coinglass.

On-chain analysis company Santiment has now unveiled the key factor behind the recent Bitcoin price decline and the broader market slump.

Reasons for Bitcoin's Decline Below $67,000

Bitcoin's value plummeted by around 5% in a single day, falling from above $70,000 to under $67,000 in just five hours. This marks Bitcoin's initial drop below $67,000 since April 4, as per blockchain intelligence firm Santiment's data.

Additionally, Ethereum, the second-largest cryptocurrency, experienced a more significant decrease, dropping by nearly 8% within 24 hours. The performance of these top digital assets sheds light on the current condition of the crypto market.

Notably, the recent downturn in crypto prices mirrors corrections in traditional assets. Santiment's report shows that the S&P 500 index and gold prices also saw declines of 1.5% and 3.4%, respectively.

This downward trend across crypto and traditional assets has ties to concerns over the Consumer Price Index (CPI) and inflation. The CPI measures consumer inflation rates, and the Fears of inflation and the Fed maintaining higher interest rates have raised worries about the central bank delaying interest rate adjustments in 2024.

While Bitcoin and gold are often viewed as hedges against inflation and economic instability, raised interest rates can lead to a shift away from high-risk assets like cryptocurrencies, potentially causing their prices to drop.

Bitcoin's Current Price

At present, Bitcoin's price is around $66,826, showcasing a notable 5% decline in the last 24 hours.