HOT MOMENTS: Bitcoin (BTC) Price Experiences Huge Drop – Here’s Why and the Data
The cryptocurrency markets have been shaken by a sharp sell-off. Bitcoin (BTC), the world’s largest cryptocurrency, plummeted from around $88,000 to the $84,000 range in the last hour.
A graph showing the decline in BTC price.
This rapid movement also resulted in a large amount of liquidation in the futures markets.
According to data from the last 24 hours, total liquidations exceeded $786 million, with approximately $683 million of that coming from long positions. In the last hour alone, $429 million worth of liquidations occurred, almost entirely from long positions. Short position liquidations remained quite limited.
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The price pullback wasn’t limited to Bitcoin. Ethereum (ETH) fell to around $2,800, while Solana (SOL) was also among the major altcoins affected by the sharp sell-off. Overall, the market saw losses of 5-7% in most of the top 10 cryptocurrencies over the past 24 hours.
Coin Bureau analyst Dan pointed to the influence of algorithmic trading behind the decline. According to Dan, 60-80% of crypto transactions are carried out by algorithms. He stated that the strengthening of the Japanese yen was misinterpreted by algorithms as a “carry trade resolution,” thus triggering automated crypto sales. Dan also argued that this movement created upward price gaps for Bitcoin, Ethereum, and Solana on the Chicago Mercantile Exchange (CME).
On the other hand, market participants noted that the decline in almost all markets today, including gold, silver, and US stocks, also affected the price of Bitcoin.
*This is not investment advice.
Continue Reading: HOT MOMENTS: Bitcoin (BTC) Price Experiences Huge Drop – Here’s Why and the Data
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