In a striking shift, Bitcoin‘s value oscillated considerably, ranging from $68,620 to $73,000 over a 24-hour period before settling near $72,000 following a sharp decline. This price behavior mirrored prior patterns, with indications pointing towards possible repeated movements in the upcoming 48 hours, akin to the notable dip on March 5th.
Market Turbulence Affects Traders
The crypto market’s instability took a toll on traders, leading to significant liquidations in futures markets amounting to $361 million in losses for both short and long position holders. This was primarily due to unexpected price movements which caught many off guard.
Data from Coinglass revealed that the majority of the liquidations were long positions, with short positions incurring comparatively lesser losses of $103 million. The lightning-fast plunge to the $68,620 mark left several traders in the lurch, reminiscent of the sharp downturn on March 5th.
Behind the Crypto Market’s Slip
The dip in cryptocurrency prices was partly influenced by U.S. inflation data surpassing projections, suggesting that the anticipated decline in inflation might not prompt an easy shift in the Federal Reserve’s monetary policy. This critical economic signal seems to be overlooked by many investors in the risk asset domain.
Highlighting the heightened volatility, 10x Research pointed out Bitcoin’s inability to gain ground during ETF trading hours, sparking fears among investors and traders of a potential price setback, with a prevailing sense of FOMO adding to the market tension.
Despite the market’s fluctuations, S3 Partners research indicates that shortsellers have faced over $6 billion in losses so far in 2023, while Bitcoin itself has surged by 130%. Nonetheless, some analysts, like Capo of the bear market, continue to forecast an imminent price correction, despite their long-standing predictions.