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What Caused The Bitcoin Price Plunge To 3000

Bitcoin recorded its sharpest daily decline in seven years, just a few hours ago, and dipped to $ 3600 Within these hours, more than $1 billion of liquidity was contracted. This volume of capital liquidation has been unprecedented in recent years.

According to Kevin Telegraph and many experts, the Dow Jones industrial index fell 9.99%, the most important contributor to the sudden fall and the 50% decline in digital currency. The US stock exchange had not experienced such sales pressure since the year 1987. The spread of Coronavirus around the world has been a major cause of this market crash.

Over the past week, bitcoin and much of the digital currency market have shown strong correlations with US stock markets, indicating a decline in investor interest in riskier markets. This solidarity, coupled with the lack of demand for bitcoin, led to the market price of the number one currency at $ 5000, and ultimately to $ 3600.

As long as the financial markets in the United States and Europe are restored to government support and assistance, bitcoin will continue to be vulnerable to sudden short-term price declines.

Eric Thies, a digital currency trader, and analyst, said in an interview with The Kevin Telegraph as long as investors focus on the Coronavirus epidemic and on the other hand see increased geopolitical tensions, such as rising tensions between Saudi Arabia and Russia. Be it oil prices, these prices will not go down. The unexpected fall in oil prices has also increased pressure on world markets, raising fears, uncertainties and subjective ambiguity for investors. He further added:

If we’re not going to exaggerate, today’s sharp jump in digital currency markets and traditional markets was interesting. While some say the fall is entirely related to the Corona virus, one can see that there are no common signs of recession in the market. It is likely that all of these falls are related to oil stresses that many have not heard of due to the Corona virus.

Tis also cited Bitcoin’s $ 3600 price, saying the fall could trigger a new cycle for the digital currency. Many analysts also see bitcoin overnight prices as the beginning of a long phase of price accumulation and stability, just like what happened in the Year 2019.

If this possibility is true and investors’ desire for riskier assets, large financial institutions will continue to lower bitcoin prices. This causes market concentration to be dispersed by whales and people who have a lot of bitcoins. This says:

The issue that I think is highly valued by many digital currency investors is the flow of capital into the new market cycle. This is the first cycle of a market in which capital will be burdened with the potential of corporations; in other words, bitcoin is now embedded in traditional markets, with the concept of a safe haven when emotions erupt in markets, when fear provokes Instinctive maintenance is money, a long way off.

Grayscale Bitcoin Trust data shows that during February, a significant amount of capital was put into the bitcoin market by various entities and individuals.

Bitcoin entered its $ 3000 channel as some experts believe the leverage is high in deals and lack of interest in buyers due to the volatility of the market. Bitcoin’s liquidity went down after a $ 10 million Limit Order was recorded in BitMax and reduced the price by $ 300. Jacob Canfield, in explaining this, wrote:

He plans to sell $ 11 million on limited orders, but this will reduce bitcoin prices in this currency compared to other currencies. Bitmax liquidity in comparison made the price at this exchange lower than $ 300.

$ 11 million limited sale on Bitmax

Much of the daily trading volume in the digital currency market comes from platforms such as Bitmax, OKEx, Futures, and FTX. This means that the majority of digital currency market subscribers use the borrowed funds provided by these platforms.

At a time when volatility is rising and unforeseen sales orders are being recorded in the million-dollar range, Bitcoin is making adjustments that remain unclear, just like Thursday’s price correction. Before the price fell on that day, Tis had announced that subsequent rally support would be $ 4800 per share based on trader’s activity in previous cycles. Before the price drop, he told the channel $ 3000:

Bitcoin appears to have caught a chart interval that was looking to exit the chart in year 2019, at around $ 5600. For market buyers, the only positive technical factor was the previous one, which eventually led to a reversal of the downward year. In that year 2018, re-testing that period led Bitcoin to exit its descending channel.

Bitcoin broke all the key support points in its recent price cuts, and even broke the $ 4800 support at all exchanges; in other words, all market buying contracts were liquidated.

An image released by I Am Nomad on Twitter shows that within a few hours, an investor has lost 1220 Bitcoin on the BitMax platform, equivalent to $ 9.7 million, It was before bitcoin fell.

More than $ 1 billion worth of bitcoin has been liquidated in the past two days. After over $ 10 million in losses or liquidation, heavy selling pressure has dominated the market and prices have fallen.

The eyes are still positive

Despite the 50% decline in the bitcoin market, many prominent people in this area, including investment company executives, say this class of assets will be safe in the long run.

Michael Sonnenshein, manager of Grayscale, said in a statement that the recent sharp fluctuations in the market have not dampened his faith in the market and its community. Gary Eskil is one of the largest digital currency investing companies with some $ 2 billion in user capital. The Sunshine said about it:

I have been working in this field for seven years. Years ago I would wake up at midnight to check on prices or physically break up when the market was in sharp decline. But I never lost faith in what this wonderful community has done. Be strong and stay warm.

Mike Novogratz, CEO of Galaxy Digital, said in a statement that investors’ confidence in all assets appeared to be diminishing, which would make bitcoin more valuable in the long run. Paolo Ardoino, Chief Technology Officer of Bitfinex Technology, says that one day it cannot ruin market credibility.

Bitcoin is an asset that returns its test, and time proves its unique power as a store of value. While Bitcoin has stalled its growth in a time when facilities have grown sharply, but with the failure of these policies, its true value will also be known.

According to Tis, the positive thing about this crash was the time it happened. According to This, the crash occurred at the beginning of the month and the market has a long time to recover. If this price cut occurred in late March, the Bitcoin monthly candle would be closed at $ 3000 per channel, affecting the performance of the coming months. Tis said:

While we don’t know what the media and the market have cooked for the market, know this: when people are scared, buy and sell when greed overtakes them. Times like these, when purchases and loss levels (catastrophic) bring about catastrophic results, are a clear sign of the real price bottom line, which often results in a heavy accumulation of capital at these levels.

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