All eyes were set on Bitcoin as it had registered a rise above $11300 mark. It was said that Bitcoin will move up to the $28000 mark by the end of the year but in the last 24 hours the price saw a marginal drop.
Furthermore on Sunday, the price of Bitcoin dropped by 13% while for Ethereum it plunged by 21% to record massive liquidation. The downfall saw a dropped from around $12,000 to as low as $10,550.
It is understood that their is two primary reason for the liquidation — the first being the volume in the cryptocurrency market which drops almost every week while the second one is that the market kept on moving away from longs and buyers.
Lower volume leads to massive price movements, as cryptocurrencies become more vulnerable. Mass liquidations become more likely during the weekend because one large liquidation could trigger a cascade of liquidations.
Bitcoin declined from $12,000 to $10,600 within 15 minutes, while ether declined from $417 to $300. Most notably, on the so-called “Black Thursday” on March 13, $1 billion worth of liquidations occurred.
“Without a doubt. BTC hit a new ATH in each of the last 3 cycles and this one will be no exception. The scarcity effect, the halving and more capital coming into crypto will ensure that,” Spartan Black’s Kelvin Koh said.