Bitcoin Price Plummets: Market Liquidation Tops $400 Million
The cryptocurrency market faced a substantial downturn over the weekend, with Cointelegraph reporting a sharp decline in Bitcoin's price to $65,000. This sudden 5% drop on April 12th was triggered by extensive liquidations of leveraged positions in Bitcoin and other cryptocurrencies, resulting in a loss of over $400 million.
Ethereum also saw an 8% decrease from its previous value. According to Coinglass, nearly $417 million in leveraged positions were liquidated in just an hour during this abrupt crash. Binance experienced the bulk of these liquidations, approximately $171 million, while OKX accounted for another significant chunk at $158 million.
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Bitcoin Flash Crash Wipes Out Nearly One Billion Dollars
As finanzen.net reported, the sudden and steep decline in Bitcoin prices led to nearly a billion dollars' worth of cryptocurrency assets being liquidated. With volatility surging throughout April following months of relative stability, investors are now grappling with sudden price swings and reevaluating their leveraged long positions in anticipation of the forthcoming halving event.
This recent downturn serves as a stark reminder of the volatility inherent in the crypto markets. While substantial inflows into spot ETFs such as those by Grayscale and BlackRock demonstrate continuing investment interest, traders are cautioned once more about the high risks of leveraged trading.
What's Next After the Bitcoin Crash?
According to Business Insider, several key factors are now shaping investor sentiment following the Bitcoin crash as the market nears an important event: the upcoming halving which has historically had a significant effect on the market. Despite Bitcoin shedding about 5% of its value recently, analysts believe that there is still underlying bullish momentum, bolstered by factors like the planned launch of Bitcoin ETFs in Hong Kong and potential UK counterparts in May.
