The leading cryptocurrency Bitcoin has experienced a price drop of 7%. As a result of this drop, traders with long positions have lost over $256 million. Despite the losses, analysts believe there is nothing to be afraid of amid the current tension in the Middle East. Equally, analysts have noted that this is a ‘normal drop’ for Bitcoin.
Bitcoin dip causes long positions liquidation
Reacting to the recent news, Benjamin Cowan said on X that this drop is normal. He added that there have been several dips of about 20-22% in this cycle in the past.
Microstrategy CEO Michael Saylor also talked about the development. He noted that the chaos is good for the performance of BTC.
However, crypto trader Rekt Capital opined that BTC will likely resume its uptrend soon while noting that it has to experience a short-term drop. “Bitcoin will retrace deep enough to convince you that the Bull Market is over,” Rekt said on X. Bitcoin experienced a crash to trade at $60,919 before coming back to find support around the $62,000 mark.
Impact of Market sentiment on the crypto market
According to CoinMarketCap data, BTC is presently trading at $63,858. The recent price drop came with implications as over $319 million in leveraged positions have been liquidated in the last 24 hours. According to CoinGlass, the liquidations involved $62.5 million in short positions and about $256 million in long positions.
With BTC still experiencing volatility, traders are anticipating the worst. If Bitcoin returns to its previous price of $67,000, over $1 billion in shorts would face liquidation. The issue is not only affecting traders in the Bitcoin market with the entire market registering a loss of over $959 million in liquidations with about 253,554 traders affected.
