The price of bitcoin fell to about $53,500 during early trading hours in Asia on Friday, hitting that low for the first time in four months. The significant drop has caused alarm among investors and market analysts.
Bitcoin (BTC) has fallen by about 6% in the last 24 hours, according to BeInCrypto.
Bitcoin’s Plummeting Price Has Liquidated Over $589 Million
The volatility in Bitcoin and the broader cryptocurrency market has caused massive liquidations. In total, $589 million has been liquidated, including more than $511 million in long positions and $78 million in short positions. Notably, nearly $100 million has been liquidated in the last hour alone.
However, in an interview with BeInCrypto, Avinash Shekhar, CEO of crypto derivatives exchange Pi42, explained that price volatility is an opportunity for short-term traders.
“Such moves usually provide opportunities, especially for scalpers, to recover their liquidated trades,” Shekhar told BeInCrypto.
Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030
Further disrupting the market, Mt. Gox moved billions of dollars of Bitcoin to an unknown wallet. According to blockchain analytics firm Arkham Intelligence, this involved the movement of 47,228 BTC, worth about $2.71 billion.
Prior to this, the estate had conducted several small test transactions. With payouts expected to begin soon, approximately 142,000 BTC and 143,000 Bitcoin Cash (BCH) are ready to be paid out.
Additionally, recent actions by the German government have contributed to market anxiety. This week, it transferred around 1,300 BTC, worth around $75.5 million, to its wallet and several crypto exchanges, including Bitstamp, Coinbase, and Kraken. This development has heightened fears of further price declines.
Amid these developments, renowned crypto analyst Miles Deutscher expressed his disappointment, suggesting that a quick drop to $48,000 would put an end to the current market turmoil.
“Can we just drop to $48,000 and be done with this shit? Dear Germany and Mt. Gox, please just dump all your stacks. Dear retailers, please just panic sell your low altcoins. Just get the pain out of the way quickly and then go up,” Deutscher wrote.
At the same time, crypto analyst Dave Volna noted that Bitcoin has broken through a critical support level at $56,500. He pointed out that the next significant Fibonacci level, around $48,000, could provide the necessary support.
Read more: 7 Best Crypto Exchanges in the US for Trading Bitcoin (BTC)
Despite the market’s setbacks, Dave the Wave maintains an optimistic outlook, reminding investors that the market is “technically still in a bullish trend.”
