Bitcoin’s 4 percent drop in price over the past 24 hours caused $256 million in long liquidations. However, analysts are convinced that this price drop is not unusual for Bitcoin. “So far this is a normal decline. In fact, we’ve had multiple declines of 20 to 22 percent this cycle,” said Benjamin Cowen.
Chaos is good for Bitcoin
MicroStrategy CEO Michael Saylor, who is personally and professionally all-in on Bitcoin, claims on Twitter about the declines: “Chaos is good for Bitcoin.”
By this Saylor is of course referring to the misery that is currently happening in the world. Wars are expensive and can generally only be financed with the money printer.
That is of course bullish for Bitcoin. The more governments turn to the money printer, the better the situation becomes for Bitcoin. According to the pseudonymous Rekt Capital, we don’t have to worry about the bull market.
“Bitcoin will fall deep enough to convince you that the bull market is over and then resume its upward trend,” said Rekt Capital.
$319.15 million in liquidations
The sudden price drop caused a total of $319.15 million in liquidations of leveraged positions in Bitcoin over the past 24 hours. According to CoinGlass data, this totaled $256.58 million in long positions and $62.58 million in short positions.
Traders appear to be preparing for more price falls. If the Bitcoin price manages to rise to $67,000 after this misery, $1.05 billion in short positions would be liquidated.
Many people currently expect Bitcoin prices to fall. Would this be the moment for us to turn around again or will we really see even more declines as a result of the misery between Israel and Iran?
At the time of writing, the Bitcoin price is clocking in at $61,300 and things seem to be stabilizing “reasonably” again.
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Source: https://newsbit.nl/normale-daling-bitcoin-veroorzaakt-256-miljoen-aan-liquidaties/
