price of Bitcoin drastically drops

Breaking News: The price of Bitcoin drastically drops to a price below $70000!What Caused the Decline?

Within a span of feeble, half an hour the bitcoin value dropped drastically to $68,500, that is a 3% decrease. The successful drop in BTC has come as a shock to the crypto enthusiasts. This rapid decrease raise questions as to any causes that may have led to such a drastic change in the scores.

One of the key reasons for such a decline seems to have occurred due to a live stream that RoaringKitty, part of the stock trading world, and related to the stock of GameStop shares. The broadcast accompanied by nearly half a million viewers and held on the major financial channel including CNBC immediately preceded the drop in GameStop’s shares.

Bitcoin price drop chart.

As it is evident by current statistics, there has been massive $300 million worth of liquidations in the crypto market in the last one hour only. Of this $285 million were long positions and the rest of the liquidations has happened in short positions. As previously mentioned, this wave of liquidations had an impact on not only Bitcoin but also Ethereum, Dogecoin, and Solana.

Further analysis of the liquidation data further established that most of these liquidations were recorded in low Market Capitalization memecoins. These coins are generally highly susceptible to fluctuations and the effects of a given sell-off tend to be more pronounced in this case.

While the total liquidation was quite small in Bitcoin terms at $44 million it is still indicative of a response to the market movements. Owners of Bitcoin experienced the consequences of the general bear market in cryptocurrencies but they were not as significant as in the case of individuals who invested in other more risky assets.

With the market taking this latest hit, the investors are waiting with bated breath to see a stabilization of the market. This sudden drop clearly shows that the market of cryptocurrencies is rather unstable and points to the fact that all the tools for making money are interconnected to some extent.

Disclaimer: The information provided by CryptopianNews is for educational and informational purposes only. It should not be considered financial or investment advice. Cryptocurrency markets are highly volatile and speculative, and investing in them carries inherent risks. Readers are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions.

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