Bitcoin Value Dips 7%: A Regular Fluctuation or a Market Concern?
Summary:
Bitcoin's value declined over 7% in the past 24 hours, causing $256 million losses for traders with long positions. However, industry experts see this as a regular fluctuation, not a crisis. In the face of the sharp drop, leveraged Bitcoin positions led to $319.15 million worth of total liquidations within 24 hours. On a larger scale, the overall cryptocurrency market cap has decreased by 8%, falling to $2.23 trillion. Despite this, demand from frequent Bitcoin holders has exceeded the supply of newly minted Bitcoins for the first time.
In the preceding 24 hours, a decline exceeding 7% in Bitcoin's (BTC) value led to a substantial loss of $256 million for traders holding long positions. Despite the ongoing political unrest in the Middle East, experts suggest this is merely a routine fluctuation. As Benjamin Cowan stated in an April 13th post, "Such a drop is normal. We've seen multiple dips of around 20-22% in this cycle already." The CEO of MicroStrategy, Michael Saylor, further emphasized this by asserting, “Bitcoin thrives in chaos,” in his April 13th post.
At the same time, a crypto-trader operating under the name Rekt Capital expressed the expectation that Bitcoin's value will re-embark on its upward trend, but not without a bit of short-lived adversity: “Bitcoin will pull back sufficiently to convince you the Bull Market is over,” he elaborated. Before stabilizing at $62,060, Bitcoin's value had endured a significant fall to $60,919 on April 13. The current value of Bitcoin, according to CoinMarketCap data, is $63,858.
Such a sudden freefall in value led to total liquidations amounting to $319.15 million from leveraged Bitcoin positions in only 24 hours. These liquidations, as per CoinGlass data, included $256.58 million in long positions and $62.58 million in shorter positions. Traders are currently preparing for an additional decline, risking liquidation of short positions totalling $1.05 billion if Bitcoin returns to its $67,000 value from just 24 hours back.
Moreover, during these past 24 hours, a total of 253,554 traders faced liquidations worth $945.9 million across the overall digital currency market. Currently, the fear and greed index, a critical tool that tracks market sentiment in the world of cryptocurrency, registers at a "greedy" 72, which is a marginal fall from the previous week's score of 78.
In correlation with these outcomes, the international crypto market cap has dropped by 8%, decelerating to $2.23 trillion. In contrast, as recently communicated by Cointelegraph, the surge in demand from Bitcoin investors remains robust. Crypto analytic firm, CryptoQuant, further explained that the demand from frequent holders has overtaken the supply of newly minted Bitcoins for the first time, indicating a shortfall in supply.
According to insight from CryptoQuant, one in every six fresh Base meme coins are scams, and an alarming 91% display vulnerabilities.
Published At
4/14/2024 5:04:13 AM
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