TL;DR Breakdown
- Bitcoin price drops by close to 21% in the last 48 hours.
- Some analysts think that the asset’s incredible run might just be coming to an end.
The crypto industry bull run has suffered one of its worst dips this year as the price of Bitcoin dropped by close to 21%. This means the value of the digital coin has fallen from its all-time high of $42k.
Ethereum and other altcoins also saw their values drop due to the dip. The second-largest crypto asset, in particular, after eyeing the $1400 mark yesterday, plummeted to $1,010.
Traders holding long positions on the cryptocurrencies had over $2 billion liquidated. This translates to over 85% of the wipeout, while those in short positions lost only $282.63.
The figures for crypto exchanges paint a more vivid picture of how the liquidation was spread. Binance accounted for the highest liquidation volume. The crypto exchange had over $900 million liquidated.
Huobi was next in line with the liquidation of over $500 million, while Bybit suffered a liquidation of $494 million. BitMex, on the other hand, saw its long contracts suffer a loss of $132 million. However, a trader on its platform suffered the highest loss of $10 million in one swoop.
Bitcoin price volatility resumes
Bitcoin price drop in value in the last 48 hours had begun to reawaken memories of 2017 when the crypto asset value dropped massively.
The asset’s price had tumbled to as low as $32,389 which is the most significant drop in value since the year began. This has made some analysts think that the asset’s incredible run might just be coming to an end.
Vijay Ayyar of Luno said that it is yet to be determined if this drop is the beginning of a more extensive correction. The Chief Investment Officer at Guggenheim Investments, Scott Minerd, tweeted that Bitcoin’s parabolic rise is unsustainable in the near term.
Despite these analysts’ identified fears, some crypto enthusiasts believe that the rally of the industry would continue because of the entrance of institutional investors.
