Earthquake in the Crypto Market after the collapse of Bitcoin!

Bitcoin loses $27,000, then $26,000, with over a billion liquidations in minutes

by Lorenzo Ciotti
Earthquake in the Crypto Market after the collapse of Bitcoin!

Earthquake in the Crypto market: Bitcoin loses $27,000, then $26,000, with over a billion liquidations in minutes. Widespread concerns for the Chinese economy and also for the stability of risk assets within one of the most complicated phases for the market in 2023.

But perhaps few expected such a heavy and harsh correction, which threw the investors after a couple of months of total calm. Bitcoin suffers after losing $28,000 during yesterday's European trading. Meanwhile, Evergrande has filed for bankruptcy in New York and worries about the strength of the Chinese economy and its future can only increase.

These are the same concerns for a few days and which had already kept the Bitcoin and cryptocurrency market on their toes. At $25,200 on the main exchanges, Bitcoin recovered more reasonable prices and quickly reached $26,000 first and a few hundred dollars more then.

It certainly isn't enough to go back to talking about price stagnation and low volatility, with many analysts expecting further problems even in these hours. What are the main causes? This is an anomalous event. Since July 21, the price of BTC has fluctuated within a very compressed range, between $29,000 and just over $30,000 with rare excursions above $31,000, for almost a month in a row.

Many have speculated about the cause of mass sales, but there may not be a single, precise cause. What is known is that the macro-economic situation does not look good, and that many investors are afraid of further collapses.

All this has also created fear on the crypto market, unleashing a small wave of panic that generated massive sales yesterday. In particular, hundreds of millions of dollars were liquidated in minutes on the futures markets.

It should not be forgotten that trading volumes in recent weeks have been particularly low, and when such a condition occurs, it takes relatively little to trigger strong price movements. Furthermore, Elon Musk's Space X company would have sold 373 million dollars of Bitcoin purchased in the two-year period 2021-2022, unleashing negative effects on the value of the cryptocurrency, which fell by 4.5% in Singapore. Numbers that brand this movement as the biggest weekly drop in three months.