The price of Bitcoin dropped 13% in a major 4-hour candlestick on February 22nd. Since briefly dipping to $47,400, the price has steadily risen to $53,000.
$3.96 billion in cryptocurrency reserves were liquidated on exchanges throughout. Almost $2 billion in BTC and $1 billion in ETH are liquidated out of this sum.
A Bloody Bitcoin Monday
About 404,256 positions have been liquidated over the last 24 hours. The biggest single liquidation on the Huobi market happened, and this was of the cryptocurrency BTC with a combined valuation of over $20.66 million.
Since hitting an all-time peak the day before, Bitcoin touched just $58,532 on Friday before almost struggling to cross $60,000.
Volatility in the price of Bitcoin is not new for veteran crypto traders. However, these new investors might become anxious because of the extended bull run that has occurred in the price of bitcoin.
The price has fallen more than 3% after Tesla’s $1.5 billion investment in Bitcoin until the price reached $42,000.
As demonstrated in the past, as Bitcoin’s price tumbles, altcoins such as Ethereum will go down.
In reality, earlier this month, Ethereum hit $195 million in weekly volume, outperforming Bitcoin’s $42 million influx for the seven-day duration that ended on February 7. Some are speculating that Ethereum even exceeded Bitcoin in terms of valuation settlement.
Ethereum is priced around $1,655, a noticeable decrease from its all-time peak of over $2,033. In addition, it can be found in the business as well.
In February, Binance Coin (BNB) has seen considerable development. After beginning the month of February at $50, it rose to an all-time peak of $345 on the last week of the month.
Is the Crash Related to Elon Musk?
Many argue that the depreciation in Bitcoin may be related to Elon Musk’s tweet mentioning how Bitcoin seems “high.”
However, two days before the cryptocurrency hit its all-time record, Musk made his comment. The businessman’s suggestion that BTC could be overvalued simply led its price to increase much higher, similarly to how his previous tweet about Tesla’s stock price being too high led to even greater heights.
That said, BTC & ETH do seem high lol
— Elon Musk (@elonmusk) February 20, 2021
Elon Musk, who operates Tesla, made a major investment in Bitcoin through his business last month, investing $ 1.5 billion in the digital currency.
In turn, the cryptocurrency hit a price of $ 58,000 and a market cap of one trillion dollars. Even though the acquisition has provided him with great profits, SpaceX CEO Elon Musk has mentioned Bitcoin being overvalued.
Bitcoin (BTC) grew gradually from Saturday, February 21, to Tuesday, February 25, resulting in a rapid price spike that led to an upward trend. Tesla’s contribution to the other investors’ assets culminated in its stock cap surpassing $1 trillion that day.
The Bitcoin reached a fresh record high by Sunday night, peaking at $58,000 per unit. To put it another way, it is actually almost double what it cost on January 27th.