Bitcoin Price Dips Amid Profit-Taking, Investor Accumulation Slows

Bitcoin experienced a dip following Tuesday's rally, driven by profit-taking activities. This downturn has had a ripple effect across the broader cryptocurrency market. On Wednesday, the overall crypto market capitalization decreased by 3.3% over the preceding 24 hours.

Bitcoin's price slid to approximately $62,500, down from a high of over $64,200 the previous day. Other major cryptocurrencies, including Ether and Cardano's ADA, also experienced declines of up to 5%.

According to on-chain analysis from CryptoQuant, Bitcoin selling by large investors has decreased since late February. However, accumulation by these major investors remains weak, with a decline of approximately 30,000 BTC over the past week. Their monthly accumulation rate has slowed from 2.7% at the end of March to just 0.5%, marking the slowest pace since February 20.

Slumps in majors came as Chinese stocks in Hong Kong extended their losses to as much as 2.9% after Wednesday's open despite the Chinese economy growing 5.4% in the first quarter. Fears of a U.S. recession are intensifying, with major institutions revising their forecasts sharply upwards.