Bitcoin’s value has dropped by more than 7% in the last 24 hours, resulting in losses of $256 million for traders who held long positions. However, analysts argue that this decline is not unusual, despite rising tensions in the Middle East. Benjamin Cowan, in a post on X, stated that this drop is within the normal range, citing previous drops of 20-22% during this cycle. Michael Saylor, the CEO of MicroStrategy, also expressed confidence in Bitcoin, stating that chaos is actually beneficial for the cryptocurrency.
On the other hand, Rekt Capital, a pseudonymous crypto trader, believes that Bitcoin’s price will recover in the long run but expects some short-term pain. According to Rekt Capital, Bitcoin will retrace significantly, potentially leading people to believe that the bull market is over.
On April 13, the price of Bitcoin fell to $60,919 but found support at $62,060. As of now, its current price is $63,858, according to CoinMarketCap data.
The sudden price drop has resulted in $319.15 million in liquidations from leveraged positions in Bitcoin over the past 24 hours. CoinGlass data shows that this includes $256.58 million from long positions and $62.58 million from short positions. Traders are preparing for further downside, and if Bitcoin’s price were to revert to its level of $67,000 from 24 hours ago, short positions totaling $1.05 billion would face liquidation.
Not only Bitcoin but the entire cryptocurrency market has experienced significant losses, with $945.9 million in liquidations from 253,554 traders in the past 24 hours. The Crypto Fear and Greed Index currently indicates a greed level of 72, a slight decrease from last week’s extreme greed score of 78.
The global crypto market cap has also taken a hit, dropping down to $2.23 trillion, an 8% decrease. However, there has been a surge in demand from Bitcoin whales, with “permanent holders” exceeding the market supply of new Bitcoin for the first time. This scarcity is expected to further increase after the halving of Bitcoin.
In related news, it has been reported that 1 in 6 new Base meme coins are scams, while 91% of them have vulnerabilities, according to a magazine article.