3 reasons Bitcoin abruptly dropped by 7.4% overnight

The price of (BTC) dropped sharply from $37,800 to $35,000 overnight, liquidating $572 million worth of cryptocurrency futures positions.

There are three major reasons why the price of Bitcoin declined steeply in the past 12 hours. The reasons are an overheated derivatives market, growing doubt in the market, and the lack of upside volatility.

15-minute candle chart (Bitstamp). Source: Tradingview
BTC futures perpetual swaps funding rates. Source: Digital Assets Data
Bitcoin price causes concern among traders. Source: Santiment