Today, the cryptocurrency market has witnessed a sharp decline in the price of Bitcoin (BTC).
According to data analysis firm Skew on February 26, more than $ 150 million worth of Bitcoin has been liquidated on the BitMEX derivatives exchange – the largest since the beginning of the year. Millions of dollars of Long and Short positions have driven the price of the king's coin down to $ 8,580 – recording a 6% decline.
$ 150mln + liquidations on BitMEX today – highest in 2020 pic.twitter.com/WO7aKyNhcI
– skew (@skewdotcom) February 26, 2020
Although the price has risen slightly back to $ 8,813 USD, this could be just a tough rally for the cryptocurrency. Market capitalization dropped by nearly $ 300 million in an hour on February 16, pushing BTC back below $ 10,000.
Traders have been prepared for the possibility of a Bitcoin price falling below $ 8,000. This could significantly affect market sentiment before the next halving event – scheduled for next May.
However, some observers are still optimistic. Tom Lee, co-founder of Fundstrat Global Advisors, predicts Bitcoin price will rise to $ 27,000 this summer on the basis of a 200-day moving average.
The global economy has an impact on the cryptocurrency market
Many cryptocurrency exchanges and blockchain technology companies have felt the impact of the potential global COVID-19 translation. Officials at cryptocurrency mining companies in China have been forced to stay at home or be trapped outside the city when the country is tightly controlling the epidemic.
Whatever the reason for Bitcoin's recent slump, this incident serves as a reminder that the cryptocurrency market may be as fragile as traditional investments. The price of altcoin XRP dropped nearly 60% on BitMEX on February 15.
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According to CoinTelegraph
Translated by ToiYeuBitcoin