In the past 24 hours, the cryptocurrency market experienced $900 million loss, primarily due to the liquidation of long positions worth $764 million and short positions amounting to $124 million.
These liquidations underscore the risks of trading on unregulated Bitcoin derivative exchanges, where sudden price movements can trigger widespread position closures and market volatility.
Bitcoin’s price fell to $53,000 on Binance, its lowest since late February, as market turbulence, uncertainty in the US economy, and investor withdrawals impacted its value.
Crypto analyst Okoro Nnamdi noted that the current decline aligns with a technical analysis pattern known as “cup and handle,” which could indicate a potential price rise in the future.
Despite recent setbacks, Nnamdi remains optimistic, projecting a Bitcoin price of $150,000 by 2025.
The downturn in Bitcoin’s price was partly influenced by the recent interest rate hike by the Bank of Japan, which increased from 0% to 0.25%. This rate change caused global investors to retreat from riskier assets, leading to a significant capital outflow and contributing to the cryptocurrency market’s volatility.
(Punch)