The price of Bitcoin saw a roller-coaster ride on Monday, hitting $70,000 before dropping below $67,000, causing a wave of liquidations in the cryptocurrency market. In the last 24 hours, the market has witnessed around $185 million in liquidations, with Bitcoin positions accounting for the majority of the losses. In just four hours, approximately $48 million worth of Bitcoin long positions were liquidated. Despite the price volatility, Bitcoin is currently trading around $67,200, showing a minimal decrease of 1%.
The sudden spike and crash in Bitcoin’s price have left many crypto derivatives traders reeling, with no clear explanation for the rapid movement. Speculation on Crypto Twitter pointed towards the U.S. government’s decision to transfer over $2 billion in seized BTC related to the Silk Road dark web marketplace. This move came shortly after former President Donald Trump’s announcement of plans to establish a national “strategic Bitcoin stockpile” and Republican Senator Cynthia Lummis unveiling her proposal for a national Bitcoin reserve.
While large transfers of Bitcoin have previously impacted the token’s price, causing it to plummet, the connection between Monday’s price drop and the Silk Road transfer remains uncertain. Bitcoin started to decline around 9:15 am ET, while the U.S. government’s massive Bitcoin transfer occurred hours later, at 12:18 pm ET. Despite the initial drop, Bitcoin has since recovered slightly, decreasing by 1.35% and reaching a low of $66,647 before rebounding.
As the market continues to be influenced by external factors and uncertain events, it is essential for investors to stay informed and cautious. The author’s views and opinions expressed in this article are for informational purposes only and should not be considered as financial or investment advice. With Bitcoin’s price dynamics remaining unpredictable, it is crucial to conduct thorough research and seek advice from financial experts before making any investment decisions. Despite the recent fluctuations, Bitcoin continues to be a popular choice among investors, highlighting the need for sound investment strategies in the volatile cryptocurrency market.
