The Bitcoin market has been plunged to a very unpleasant position below $69,000 market price per BTC. This has sparked a lot of discussion and confusion among investors and analysts trying to find an explanation for the Bitcoin sudden fall.
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.
Responding to questions GameStop shares plummeted during the live stream and RoaringKitty has recorded a $235 million loss. It appears that the panic about the shares of the American video game retailer company has affected the cryptocurrency market as well as the movement and actions of the investors and traders. Due to the high degree of risk associated with both GME shares and the cryptocurrencies such as Bitcoin, this cross-sector relation should not come as a surprise.
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.
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