Crypto-Crash: Bitcoin Plummets Below $30K in Sudden Sell-Off, Reasons and Timeline for Recovery | CPT PPP Coverage

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• Bitcoin’s value dropped more than 3% in just 15 minutes in European morning hours on Wednesday, taking it below $30,000, and eventually as low as $29,000.
• The drop followed a huge market sell order at Binance, and an unexpectedly high U.K. March inflation figure of more than 10% may have influenced market sentiment.

Bitcoin’s sudden drop below $30,000 in just 15 minutes has caused millions of dollars’ worth of futures positions to be flushed out. While the cause of the sell-off is not immediately known, a huge market sell order of bitcoin occurring from crypto exchange Binance and an unexpectedly high U.K. March inflation figure of more than 10% may have influenced market sentiment. Additionally, more than $25 million in bitcoin futures were liquidated, of which longs, or bets on rising prices, made 98% of the positions, causing a so-called long squeeze.

Bitcoin Drops to $29,000 in Sudden Sell-Off; Longs Are 98% of Over $160M in Crypto Liquidations

16K BTC is an Unusual Size to be Market Sold Solely from Binance Spot Prominent Crypto Twitter trader @52kskew pointed out that a 16,000 bitcoin sell order, worth over $467 million at current prices, preceded the sudden dump, which may have likely initiated the long squeeze. Liquidation refers to when an exchange forcefully closes a trader’s leveraged position due to a partial or total loss of their initial margin. Large liquidations can signal the local top or bottom of a steep price move, which may allow traders to position themselves accordingly.

$BTC Spot CVDs
16K BTC sold at market from binance spot
Other spot exchanges had pretty typical size being sold

Interesting selloff here pic.twitter.com/9SmirkSM7b

— Skew ? (@52kskew) April 19, 2023

Effects of the Sudden Sell-Off The sudden drop in Bitcoin’s value caused a sell-off in the broader crypto market, with Ether (ETH), polygon (MATIC), and dogecoin (DOGE) falling 5.3% in the past 24 hours, and solana (SOL) losing nearly 9%. The reaction was far more severe than in other asset classes, with some experts stating that it was more of a leverage washout than a fundamental reason.

$BTC
Either a new local low here if $29K is held & no FUD is dropped later

However, 16K BTC is unusual size to be market sold solely from Binance spot usually the kind of sale happens before bad news comes out.

if a nothing burger event; could see an omega short squeeze…

— Skew ? (@52kskew) April 19, 2023

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In conclusion, Bitcoin’s sudden drop in value has caused millions of dollars in liquidations, with longs making up the majority of positions. The cause of the sell-off is not immediately clear, but it may have been influenced by a huge market sell order at Binance and an unexpectedly high U.K. March inflation figure. The sudden drop has also caused a sell-off in other cryptocurrencies, highlighting the interconnectedness of the crypto market.

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