Bitcoin has experienced a significant decline in price over the past 24 hours, resulting in losses of $256 million for traders with long positions. Despite escalating geopolitical tensions in the Middle East, analysts believe this drop is not out of the ordinary. Benjamin Cowan, in a post on X, stated that similar drops of 20-22% have occurred in previous cycles. MicroStrategy CEO Michael Saylor also expressed his optimism, declaring that chaos is beneficial for Bitcoin.
However, pseudonymous crypto trader Rekt Capital believes that Bitcoin’s price will first experience short-term pain before resuming its uptrend. Rekt explained that Bitcoin will retrace deep enough to convince investors that the Bull Market is over. On April 13, Bitcoin’s price reached a low of $60,919 before finding support at $62,060. At the time of publication, its current price is $63,858 according to CoinMarketCap data.
The sudden price plunge has led to a total of $319.15 million in liquidations from leveraged positions in Bitcoin. CoinGlass data reveals that $256.58 million came from long positions and $62.58 million from short positions. Traders are preparing for further downside, as short positions totaling $1.05 billion would face liquidation if Bitcoin were to revert to its price level of $67,000 from 24 hours ago.
The entire cryptocurrency market has also experienced widespread pain, with $945.9 million liquidated from 253,554 traders in the past 24 hours. The Crypto Fear and Greed Index currently sits at a greed level of 72, slightly lower than last week’s extreme greed score of 78. Additionally, the global crypto market cap has dropped 8% to $2.23 trillion.
In other news, demand from Bitcoin whales has reached an all-time high. “Permanent holders” are surpassing the market supply of new Bitcoin for the first time, indicating that mining production is insufficient to meet investor demand. This scarcity is expected to further increase after the Bitcoin halving.
According to recent data shared by crypto analytic firm CryptoQuant, 1 in 6 new Base meme coins are scams, and 91% of them have vulnerabilities.