Bitcoin’s price has declined by over 7% in the last 24 hours, resulting in losses of $256 million for traders with long positions. Despite this, analysts view the drop as typical within Bitcoin‘s market cycles and not necessarily influenced by escalating geopolitical tensions in the Middle East.
Benjamin Cowan notes that such drops are normal within Bitcoin’s cycles, citing previous instances of similar declines. MicroStrategy CEO Michael Saylor expresses confidence in Bitcoin’s resilience, stating that “chaos is good for Bitcoin.” Meanwhile, Rekt Capital anticipates a temporary downturn before Bitcoin resumes its upward trend.
On April 13, Bitcoin’s price fell to $60,919 before finding support at $62,060. Currently, it stands at $63,858, according to CoinMarketCap data.
The sudden price plunge led to $319.15 million in liquidations from leveraged positions in Bitcoin over the past 24 hours, with traders preparing for further downside. The Crypto Fear and Greed Index reflects a slight decrease in market sentiment from extreme greed to a greed level of 72.
The entire cryptocurrency market experienced significant pain, with $945.9 million liquidated from 253,554 traders over the last 24 hours. The global crypto market cap has dropped to $2.23 trillion, an 8% decrease.
Demand from “permanent holders” has surpassed the market supply of new Bitcoin for the first time, indicating growing scarcity in the market. This trend is expected to continue, especially after the upcoming Bitcoin halving event.
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