Bitcoin’s price has declined by more than 7% in the past 24 hours, resulting in losses of $256 million for traders with long positions. However, experts believe that this drop is not unusual, despite escalating geopolitical tensions in the Middle East.
According to Benjamin Cowan, this decline is within the normal range of fluctuations. In fact, there have been several drops of 20-22% during this cycle. MicroStrategy CEO Michael Saylor also sees chaos as beneficial for Bitcoin.
Pseudonymous crypto trader Rekt Capital believes that Bitcoin’s price will eventually resume its upward trend, but not before experiencing some short-term pain. Rekt explained that Bitcoin will retrace deep enough to convince people that the bull market is over.
On April 13, Bitcoin’s price dropped to $60,919 before finding support at $62,060. As of now, its current price is $63,858, according to CoinMarketCap data.
The sudden price plunge led to a total of $319.15 million in liquidations from leveraged positions in Bitcoin over the past 24 hours. This includes $256.58 million from long positions and $62.58 million from short positions. Traders are preparing for further downside, as a drop to the price level of $67,000 just 24 hours ago would result in the liquidation of short positions totaling $1.05 billion.
The entire cryptocurrency market has also experienced widespread losses, with $945.9 million being liquidated from 253,554 traders in the past 24 hours. The Crypto Fear and Greed Index currently stands at a greed level of 72, slightly lower than last week’s extreme greed score of 78.
The global crypto market cap has dropped by 8% to $2.23 trillion. Additionally, demand from Bitcoin whales has never been stronger, surpassing the market supply of new Bitcoin for the first time. This indicates that the amount of new Bitcoin produced by mining is not enough to meet investors’ demand, and the scarcity will only increase after the Bitcoin halving.
In other news, it has been revealed that 1 in 6 new Base meme coins are scams, and 91% of them have vulnerabilities, according to a recent magazine report.