Crypto Market Plunges as Bitcoin Falls Sharply
On Sep 08, 2021
Bitcoin continues to be the price-determining factor in the market. As Bitcoin falls sharply, the crypto market experiences a significant drop.
Since yesterday the market volatility has increased with the price fluctuations in Bitcoin. Bitcoin almost hit $53,000 with an upward trend since 21 July after dipping to $29k. Some of the news, such as El Salvador buying additional Bitcoins, has affected positively at first, but then Bitcoin retested above the $50k level.
Some analysts were positive about the event by mentioning that if the price does not go down to $50k then bitcoin will even rise up to $54k. However, this did not happen and the price could not stay above $50k and fell sharply within a few minutes.
The price of Bitcoin went down from $50k to $42,900 during the drop. Following the dip, the price bounced back to the $46k level and fluctuated around this price. Bitcoin has tested $47,500 but could not break this price to rise more.
Meanwhile, the president of El Salvador, Nayib Bukele, announced that they bought an additional 150 bitcoin during the dip. However, it did not have a significant impact on the price and at the time of writing the price of Bitcoin was $46,086.
Buying the dip π
150 new coins added.#BitcoinDay #BTCπΈπ»
β Nayib Bukele πΈπ» (@nayibbukele) September 7, 2021
Billions Are Liquidated During the Plunge
The market crash affected investors adversely. Huge liquidations of leveraged long positions occurred as Bitcoin fell around $42k. During the Bitcoin lost its value by $10,000 and bounced back to $46,000 shortly. In percentage, the price declined by 19%, and it was even worse for the altcoins.
The most suffered investors were those who had leveraged long positions. This was the next huge liquidation since the price drop of Bitcoin in May. Open interest on perpetual futures fell from $13.3 billion to $9.5 billion. As a result of the decline, $4 billion has been liquidated from a leveraged position.
Another result of the Bitcoin price dump displayed itself in the fear and greed index. If we look at the last 3 months, we can see that market was experiencing extreme greed with 79 value according to Alternative. This trend has broken down yesterday and fell down to 47 which is neutral sentiment.
Disclaimer: All information provided in the content is for informational purposes only and should not perceive as investment, financial, or trading advice. Any investment decision you make should be a personal choice based on financial knowledge, experience, and market research.
