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Although the volatility experienced after the leading cryptocurrency Bitcoin (BTC) reached its historic peak caused concern among investors for a while, it quickly recovered.
In recent days, a movement reminiscent of bear season has been observed in the cryptocurrency market. The leading cryptocurrency, Bitcoin (BTC), created great excitement by reaching its all-time high (ATH) after years. However, after ATH, there was a sharp decline as a result of events that developed contrary to expectations.
So why did this decline occur when market conditions were positive?
What lies behind the Bitcoin (BTC) decline?
Bitcoin (BTC) fell after celebrating its ATH by reaching $69,000 and quickly fell to $59,000. While investors were investigating the reasons for this decline, BTC quickly showed signs of recovery. The cryptocurrency market fell to $59,000 in a short time after BTC saw $69,000. During this decline, many altcoins lost between 10% and 30%.
The decline in BTC also affected liquidation data. According to Coinglass data, $1.05 billion was lost from the cryptocurrency market in the last 24 hours. According to sensational liquidation data, a large part of this loss was caused by long (bullish) transactions. According to the data, $309 million of the liquidations were Bitcoin transactions. On the Ether (ETH) side, $185 million and $171 million in other major altcoins were liquidated.
The factors that stand out as the reason for the decline include the mobilization of old wallets and the selling pressure created by the bears at the $69,000 resistance. These factors contributed to the rapid decline of BTC. While the decline was also evaluated as a liquidity cleaning, volatility was created through market sell. In particular, a whale created great volatility by selling Bitcoins that he had held for 14 years after ATH and triggered panic sales.
JPMorgan bank had previously stated that it expected a correction after the Bitcoin halving and that the price could drop to $42,000. Whether this prediction will come true or not remains to be seen.
