Major Bitcoin liquidations on crypto trading platforms

The Bitcoin price is extremely volatile at the moment, recording extreme rapid developments. Yesterday, the price dropped from $ 5800 to $ 3850. However, the immediate buy-in action brought BTC back to $ 5,200 in 20 minutes.

Although it is easy to attach the “buy action” as an explanation, the evolution has not been organic, even in line with Bitcoin standards. Analysts are speculating the reasons that could have caused this sharp decline.

Bitcoin liquidations from a miner

According to Chain News, the recent drop in Bitcoin price below $ 6,000 could be caused by a BTC miner. On March 11, a large miner transferred over 1000 BTC to over 55 exchanges. Apparently, the cryptocurrencies were mined in 2010 and were recently liquidated from 28 wallet addresses.

“These 28 addresses extracted Bitcoin from August to October 2010, and most of the 1,000 Bitcoins were never touched after they were mined in 2010,”

said Chain.info.

Bitmex liquidation can also justify a sharp drop

According to datamish, in the last 6 hours, BitMEX has been liquidated over $ 478 million, and in the last 24 hours, the total liquidations reached a total value of $ 1.44 billion.

Interest opened for Binance fell by more than $ 20 million over the same period, indicating major Bitcoin liquidations.

Crypto trader Jacob Canfield warned Twitter:

“The market is NOT SAFE for trade now. The Bitmex price just went from 3600 to 4400 to 3600 and the platform prevented all connections. On Coinbase, the price increased to $ 5500 ”.

Optimistic outlook

On the whole, the crypto market has undergone the same orientation towards cash that has affected the traditional financial markets. Even gold, considered a security asset in times of crisis, fell by 3.5%.

In the short term, investors expect major volatility. However, many express long-term optimism.

“It is not a market for those with a weak heart. Major losses are on all lines ”,

said BCB Group CEO Oliver von Landsberg-Sadie.

“Before halftime we have a sale at half price and it will not take long. The market is resold in globally correlated economic relationships and it is not difficult to see a short term correction ”,

added Landsberg-Sadie.

However, he stressed the purchase of high net worth investors. They continue to place purchase orders for bitcoin, despite the economic turmoil.

Other analysts point out that investing in Bitcoin will deliver promising long-term returns after the end of the crisis.

“In the long term, we see this period as an opportunity for many investors to gain exposure to the asset class at attractive prices,”

said Asim Ahmad, founding partner and Co-CIO at Eterna Capital.

Bitcoin is currently trading around $ 5000.