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What Caused the Recent Bitcoin Price Tumble?

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What Caused the Recent Bitcoin Price Tumble

Understanding Bitcoin Price Tumble: $310 Million Liquidation in 24 Hours

Understanding Bitcoin Price Tumble: $310 Million Liquidation in 24 Hours

Significant volatility is still present in Bitcoin, continuing a downward trend that started last month. The Bitcoin price has decreased by about 5.32% during the last day, breaking through the $58,000 barrier and reaching as low as $57.246, according to statistics from CryptoSlate.

Market watchers said that this drop might be a sign that the price of the flagship digital asset will drop to the low $50,000s if the aggressive selling activity persists. Blockchain expert Lookonchain discovered a whale earlier today that sold 3,500 Bitcoin for $206 million on the Binance platform in under five hour

Buying Activity Declines as Selling Pressures Increase

The creator of 10x Research, Markus Thielen, observed that as selling pressures have increased, buying activity has decreased. He pointed out that at $60,000, a critical juncture for miners and purchasers of Spot ETFs, Bitcoin overcame significant psychological and technical barriers. Notably, this represents the three-month trading range’s low point.

Price declines could accelerate as support gets broken and sellers scramble to find liquidity. Only ill-informed traders are willing to buy here. Breaking this support could cause a sharp decline to the low $50,000s.

Thielen
  • Concerns over the upcoming Mt. Gox BTC settlement, which will give creditors access to around $9 billion worth of Bitcoin, and limited market liquidity are two factors that some observers blame for the price decline.
  • Also, cryptocurrency exchange BloFin released a research paper alerting investors to the considerable negative risk associated with Bitcoin, particularly in the event of an unforeseen circumstance.

FAQ

How do Whale Sales Affect the Price of Bitcoin?

Whales are investors who own large amounts of Bitcoin. When whales sell, it can cause a sudden increase in supply and a drop in the price. Such sales usually have a significant impact on the market.

What is the Impact of a 3,500 BTC Sell-off on the Market?

A 3,500 BTC sell-off can create a huge selling pressure in the market and cause the price to drop rapidly. This could encourage other traders to sell as well, accelerating the decline.

What does the $310 Million Liquidation Mean?

The $310 million liquidation means the mandatory closure of positions of traders who are unable to cover collateral in margin trades. This could cause the market to fall further.

For more up-to-date crypto news, you can follow Crypto Data Space.

What Caused the Recent Bitcoin Price Tumble?
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lectertodd

Lectertodd is 25 years old. She graduated from Çankaya University, Department of Psychology, in 2021. She actively works as a writer, translator, and editor for various websites. Moreover, she loves reading, researching, and learning new things.

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