April 19, 2024
Bitcoin price today

Bitcoin Price Plunges as Crypto Liquidations Top $661 Million

In the latest cryptocurrency news, Bitcoin’s value plummeted 7.5% within hours on March 15. According to Tradingview, the world’s largest cryptocurrency fell from $72,000 to $66,500 before briefly recovering to $68,000 before being rejected and falling further to around $67,500.

The price decline caused a wave of liquidations worth more than $661 million in the last 24 hours, affecting roughly 200,000 traders. Notably, long positions accounted for 80% of the liquidations, totaling $525.2 million, while short positions resulted in $136.5 million.

Source: Tradingview

Market Analysis and Speculation

Experts speculate on the underlying causes of this volatility. Pav Hundal, lead analyst at Australian crypto exchange Swyftx, voiced concerns about a potential correction back to the low $60,000 or high $50,000 levels if exchange-traded fund (ETF) volumes continue to decline. Notably, Bitcoin ETF inflows were down 48% on their 14-day average on March 14, according to Farside Investors data.

Analyst CrediBULL Crypto, with a significant following, commented on the situation, suggesting that this drop could be the long-awaited correction. He predicted further potential declines, suggesting Bitcoin could fall to around $63,000 to $64,000.

On March 14, Greeks Live, a cryptocurrency derivatives tooling provider, announced on X that there had been a “recent change in market tempo.”

Economic Data’s Role

The release of economic data in the United States this week may have exacerbated the declines. Projections for prolonged high rates from the Federal Reserve were fueled by above-expectation Fresh Producer Price Index (PPI) data, while hotter-than-expected Consumer Price Index (CPI) data added to economic concerns, impacting both crypto and traditional markets.

The entire cryptocurrency market capitalization fell by 7.3% to $2.68 trillion, with over $175 billion leaving the space during the volatile trading session. As markets remain turbulent, investors anticipate greater volatility in the days ahead.

Image by freepik

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