Bitcoin’s ‘normal drop’ leads to $256M longs liquidated — analysts

The drop in the price of Bitcoin (BTC) by more than 7% in the last 24 hours resulted in losses of $256 million for traders with long positions.

However, analysts say this is nothing out of the ordinary, despite escalating geopolitical tensions in the Middle East.

“So far it’s been a normal decline. In fact, we’ve had several 20-22% declines over the course of this cycle,” Benjamin Cowan said in an April 13 article on X.

“Chaos is good for Bitcoin,” MicroStrategy CEO Michael Saylor said in an April 13 article on X.

Meanwhile, pseudonymous cryptocurrency trader Rekt Capital believes that the price of Bitcoin will resume its “uptrend”, but not before first experiencing short-term difficulties:

“Bitcoin will retrace deep enough to convince you that the bull market is over,” Rekt explained.

On April 13, Bitcoin price fell as low as $60,919, before finding support at $62,060.

At the time of publication, its current price is $63,858, according to data from CoinMarketCap.

The sudden price drop led to a total of $319.15 million in Bitcoin leveraged position liquidations over the past 24 hours.

According to CoinGlass data, this included $256.58 million in long positions and $62.58 million in short positions.

Traders appear to be bracing for further declines. If the price of Bitcoin returned to its $67,000 level just 24 hours ago, short positions totaling $1.05 billion would be liquidated.

Although the entire cryptocurrency market experienced widespread difficulties, $945.9 million was liquidated among 253,554 traders in the last 24 hours.

The Fear and Greed Index – a major tool that tracks market sentiment in crypto markets – currently stands at a Greed Level of 72, a slight decline from the Extreme Greed Score of 78. last week.

Related: Why XRP Price Could Rise 70% Against BTC After Bitcoin Halving

The global crypto market cap also declined by 8%, falling to $2.23 trillion.

Meanwhile, Cointelegraph recently reported that the growth in demand for Bitcoin whales has never been stronger.

Demand from “permanent holders” has exceeded the market’s supply of new Bitcoins for the first time, according to data shared by crypto analytics firm CryptoQuant.

This indicates that the amount of new Bitcoin produced by mining is insufficient to meet crypto investor demand, and scarcity will only increase after the Bitcoin halving.

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