Bitcoin Price Drops Below $50,000, Over $1 Billion In Trades Liquidated

The recent drop in bitcoin’s price has contributed to margin liquidations exceeding $1 billion.

Over the last 24 hours, bitcoin’s price has dropped by approximately 9% as more than $1,000,000,000 of leveraged bitcoin long positions have been liquidated across various exchanges.

Liquidated long positions over the last 24 hours

The pullback over the last 24 hours is a continuation of a move that started on April 14th, after Bitcoin hit an all time high of $64,800. From peak to trough, the market has retraced as far as -26.97% since the April 14th all time high, a common occurrence in a bitcoin bull market.

Bitcoin’s dramatic reduction in price, shown in Tradingview

Various reasons have been put forward by market commentators as to the reason for the pullback, one of which was U.S. President Joe Biden’s proposal to increase the capital gains rate for individuals with high incomes.

Although this headline may have had an effect on the markets and helped to spur this deleveraging event, ultimately, attempting to pin market fluctuations and volatility on a particular event or development can be quite futile. Bitcoin is a volatile asset, and its volatility is the price one pays for its outlandish returns.

Bitcoin realized volatility: last 6 months

Although the recent drop in price may frighten new entrants, it once again highlights the need to remain focused on bitcoin’s long-term fundamentals, and dollar cost average into a position. The Bitcoin network remains the strongest and most robust monetary network in the world, and nothing has changed in that sense over the previous 9-day span.

Enjoy the sale while it lasts and stack your sats, or someone else will. 

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Share on linkedin
LinkedIn
On Key

Related Posts

Promoting Bitcoin Could Damage The Reputation Of Banks, ECB Warns

The European Central Bank has cautioned banks against promoting Bitcoin investments, arguing that the cryptocurrency’s apparent calm will likely pan out, plunging prices lower. In a Wednesday blog dubbed “Bitcoin’s Last Stand” by Ulrich Bindseil and Jürgen Schaaf, the director general and advisor of the ECB of the institution noted that banks risked incurring long-term

Bitcoin, Ether Not Securities Because They Have No Issuer: Belgium Regulator

The regulator of the European country said cryptocurrencies issued by computer codes are not considered securities. Brussels is neutral to blockchain technology, a stark contrast to the US. Brussels’ financial authority has clarified that cryptocurrencies without an issuer cannot be classified as securities. The Financial Services and Markets Authority (FSMA) announced that digital assets issued

Over 10K Bitcoin (BTC) Moved To Crypto Exchange, Are Miners Selling?

Bitcoin price rallied after Fed Chair Jerome Powell hinted at slower rate hikes in December and upcoming sessions. The BTC price hit a high of $17,194 with an over 200% jump in trading volume. On-chain data indicates that miners facing financial issues are indeed selling their Bitcoin holdings, with Bitcoin hashrate decreasing continuously due to