Bitcoin’s ‘Normal Drop’ to $256M Prolonged – Analysts

Bitcoin'S 'Normal Drop' To $256M Prolonged - Analysts


Bitcoin's (BTC) price drop of more than 7% in the past 24 hours has resulted in $256 million in losses for traders with long positions.

However, while geopolitical tensions in the Middle East continue to escalate, analysts believe it is nothing out of the ordinary.

“So far this has been a normal drop. In fact, we've had a lot of 20-22% drops this cycle,” Benjamin Cowan said in an April 13 post on X.

“Chaos is good for Bitcoin,” said Michael Saylor, CEO of MicroStrategy, in an April 13 post on X.

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Meanwhile, anonymous crypto trader Rect Capital believes Bitcoin's price will continue to “improve,” though not before experiencing some short-term pain first:

“Bitcoin will bounce back to convince you that the bull market is over,” Rekt explained.

On April 13, Bitcoin price dropped to $60,919 before finding support at $62,060.

According to CoinMarketCap, the current price at the time of publication is $63,858.

In the last 24 hours, the price of Bitcoin has dropped to $60,919. Source: CoinMarketCap

The sudden price drop has resulted in a total of $319.15 million in outflows from unprofitable positions in Bitcoin over the past 24 hours.

According to CoinGlass data, this includes $256.58 million from long positions and $62.58 million from short positions.

Traders seem to be bracing for further weakness. If the price of Bitcoin returns to $67,000 24 hours ago, short positions totaling $1.05 billion will face payouts.

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A total of $319.15 million has been released in Bitcoin slots in the last 24 hours. Source: CoinGlass

Although the entire cryptocurrency market experienced widespread pain as $945.9 million was withdrawn from 253,554 traders in the last 24 hours.

The Fear and Greed Index – a key tool that monitors market sentiment in crypto markets – is currently at a greed level of 72, down slightly from last week's high of 78.

Related: Why XRP Price Could Jump 70% Against BTC After Bitcoin Halves

The value of the global crypto market also hit 8% to $2.23 trillion.

Meanwhile, Cointelegraph recently reported that the demand for Bitcoin whales has never been stronger.

According to data shared by crypto analytical firm CryptoQuant, the demand for “permanent holders” exceeded the supply of the new bitcoin market for the first time.

This indicates that the amount of new bitcoins produced by mining is not enough to meet the demand of crypto investors and the shortage will only grow further after the bitcoin halving.

Magazine: 1 in 6 new Base meme coins are scams, 91% vulnerable

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