Bitcoin, the world’s largest digital currency, lost around 10% of its value on Friday after the panic among retail traders triggered a $100 billion sell-off in the crypto market. As of writing, BTC is trading near $46,200 with a total market cap of $860 billion.
The cryptocurrency later parred with gains marginally to trade at levels of about $47,000 as sellers rose, increasing the sale-side attack, at some point even touching the $46,500, down 1.30% intraday, during early Friday. In doing so, the crypto major jostles with the recently flashed intraday low of $46,013 while keeping the previous day’s break of an ascending trend line from January 27.
The decline on BTC started after Elon Musk tweeted saying that Bitcoin and Etherium prices do seem high, pushing a wave of investors to sell their holdings in the cryptocurrency.
No doubt that the top cryptocurrency is still going to go up and continue its rally in a while, but as of now, it’s struggling. The prices have already fallen from $58,000 to currently $47,000, which is more than 15% in just a few days. We believe retail investors are panic selling, and big whales are buying in. For Example, just the day before yesterday, Microstrategy invested $1 billion in Bitcoin at an average purchase price of around $52k.
BTC price went as high as $52,076.32 in the past 24 hours, after more than 13,000 BTC, worth roughly $650 million, were moved out of institution-focused Coinbase Pro exchange Wednesday afternoon. This move is usually a bullish sign for the markets, reflecting institutional investors’ support to bitcoin’s long-term value, as they move their bitcoin to custody wallets.
According to the latest data published by crypto analytics, around $900 million worth of long cryptocurrency positions got liquidated in the last 24 hours as Bitcoin and Ethereum lost nearly 10% of their values in a single day. Approximately 142,000 crypto traders were liquidated during the last 24 hours.
Ethereum had traded in a range of $1,461.18 to $1,669.24 in the previous twenty-four hours. Over the past seven days, Ethereum has seen a drop in value, as it lost 23.12%. The volume of Ethereum traded in the twenty-four hours to time of writing was $24.23 billion or 17.04% of the total volume of all cryptocurrencies. It has traded in a range of $1,370.4504 to $2,040.7922 in the past 7 days.
Bitcoin Trading Platform Coinbase files for IPO.
Meanwhile, Coinbase, one of the largest cryptocurrency trading platform on Thursday released documents for its public debut on the Nasdaq stock exchange via a direct listing.
In the filing, the digital trading platform cited as a risk factor BTC creator, Satoshi Nakamoto – the pseudonym used by the person or group of people who created bitcoin. Bitcoin’s value has largely been driven by its deflationary tendencies. If 1.1 million bitcoins were released into the market, the digital currency’s price would almost surely fall.
The filing also referenced Nakamoto’s personal stash of the electronic coin, which totals over 1 million . As of February, one BTC was worth about $50,000.