- on Sunday, Bitcoin did seem to stabilize a little bit after facing a very harsh sell-off, the supposedly largest Cryptocurrency in today’s world is not going through the worst performance that it has shown in the past eight months.
- About $1.5 billion worth of positions of trading were liquidated in the period of 3 days.
Bitcoin has always been at odds regarding the price fluctuations and all the highs and lows of Cryptocurrency. While on Sunday, Bitcoin did seem to stabilize a little bit after facing a very harsh sell-off, the supposedly largest Cryptocurrency in today’s world is not going through the worst performance that it has shown in the past eight months. Currently, BTC was just changing hands below $35000, which went up about 1.6% over the last 24 hours. About $1.5 billion worth of Bitcoin positions of trading were liquidated in the period of 3 days.
In the last seven days, the price of BTC has gone down by about 19% in total. This is now known as the worst performance week for Bitcoin since the year 2021 in the month of May. Hence, this is low for Bitcoin. However, this time, the traders of the cryptocurrency Bitcoin are pricing in the fear that the Federal Reserve will properly move in just a matter of months to put a tight leash on the different monetary conditions that are prevalent in the world ever since the offset of coronavirus in 2020.
This particular shakeout that happened quite recently left Bitcoin shaking, and it was down by half from the original record price. This downfall was a great reminder that cryptocurrencies could be pretty volatile, and one shouldn’t depend on the market solely because no one knows when the prices might go high or low.
“One of the bullish drivers for crypto over the last two years has been the surplus of pandemic-related fiscal and monetary stimulus globally, and much of that is coming to an end,” said the head of the Institutional Research for Coinbase, one of the premier exchanges for Cryptocurrency. However, due to the issues such as the pandemic and other factors, cryptocurrencies have been experiencing a lot of fluctuations, and BTC is one of them for sure.
The Crash of Bitcoin
The founder of Fairlead Strategies, Katie Stockton, one of the best analysis firms for cryptocurrencies, mentioned that this particular plunge in the price that took place for Bitcoin over the past week was very emotionally charged and made a huge impact on the market for sure. She said, “Because shakeouts are common, we would await confirmation of a breakdown below cloud-based support (~$37.4K) before taking a bearish long-term stance”. This was one of the lowest points for Bitcoin since May 2021, and that too is because of the price fluctuations. BTC has been a very powerful cryptocurrency ever since its inception.
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However, the performance issues and fluctuations of the prices have led the users and investors to believe that it is no longer a reliable cryptocurrency. The President of El Salvador Nayib Bukele tweeted this late Friday about Bitcoin, mentioning that the bitcoin-friendly country took major advantage of the price drop and bought about 410 BTC for just $15 million, adding that some people were selling cheap BTC.
The price of Bitcoin hasn’t been this low since May-July 2021. Since the price fluctuations have been going from low to high and to low once again, there is no assurance of the performance of Bitcoin improving for sure. Humorous statements and laughable posts are currently filling the different social media sites such as Reddit and Twitter. One especially clever user also tweeted that the price chart of this cryptocurrency BTC created a particular pattern that resembles Pikachu’s (the Pokemon species from the anime series Pokemon) ears.