- The cryptocurrency market party seems to be ending as Bitcoin’s (BTC) price dropped by nearly 8%, trading around $67,345.
- In recent trades, Bitcoin’s value dropped below $68,000, plummeting to $67,788, marking a 7.53% decline in the last 24 hours.
- According to Santiment, significant stakeholders in Bitcoin have played a crucial role in the recent increase in market value over the past five weeks.
Bitcoin’s sudden 8% price drop is causing over $500 million in liquidations, and further deepening of the decline is anticipated.
Bitcoin Price Experiences an 8% Sudden Drop
The cryptocurrency market party seems to be ending as Bitcoin’s (BTC) price dropped by nearly 8%, trading around $67,345, and the market capitalization fell to $1.322 trillion. The broader cryptocurrency market has lost over $200 billion in the last 24 hours. Selling pressure in the broader cryptocurrency market emerged as the United States reported higher-than-expected Producer Price Index (PPI) inflation data.
In recent trades, Bitcoin’s value dropped below $68,000, plummeting to $67,788, marking a 7.53% decline in the last 24 hours, according to data from Binance. During the same period, Coinglass data indicates that liquidations across the network amounted to $576 million, with long positions accounting for $448 million. This widespread liquidation activity has affected 167,000 individuals.
According to Santiment, Bitcoin’s price has dropped below $70,000 for the second time in three days. Analysis of on-chain transaction volume highlights increased activity on the network. However, the beginning of a decrease in ownership is seen as a positive sign, indicating a necessary capitulation phase.
Furthermore, Santiment data also points to whale accumulation in recent weeks. According to Santiment, significant stakeholders in Bitcoin have played a crucial role in the recent increase in market value over the past five weeks. Wallets holding between 10 and 10,000 BTC have accumulated approximately 154.16K coins since February 4, accounting for approximately 0.665% of the total supply. The current value of these wallets exceeds $10.9 billion.
Will the Bitcoin Price Decline Further?
In an assessment of current market dynamics, cryptocurrency analyst CrediBULL Crypto shares insights into the recent price movement, noting that the expected upward momentum did not materialize, signaling a potential downward trend.
CrediBULL Crypto points out the recent drop in prices and the decrease in Open Interest (OI) accumulated in the market. However, despite this decline, the analyst suggests there is still room for further downward movement before potentially reaching a “baseline.” CrediBULL Crypto identifies a potential support level between $63,000 and $64,000 as a range called the “green zone.”
According to the analyst, this identified range presents a logical area where a bounce or reversal in price could occur, potentially aligning with the complete elimination of remaining OI accumulation.
