• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Free SpinsTry
  • Play FinanceTry
No Result
View All Result
Breaking News: Bitcoin Price Retests $27K Following Fed Rate Decision
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Free SpinsTry
  • Play FinanceTry
No Result
View All Result
NewsBTC
No Result
View All Result
Breaking News: Bitcoin Price Retests $27K Following Fed Rate Decision

What Sent Crypto Plunging 50% Lower? Top CEO Weighs In

Nick Chong by Nick Chong
3 years ago
in Cryptocurrency news
Reading Time: 3 mins read
Advertisement

The Thursday before last were arguably some of Bitcoin’s worst days ever; the crypto asset saw a 40% loss, which was the second-largest percentage collapse in BTC value in a day, second only to the Mt. Gox meltdown. At the drop’s worst, the cryptocurrency was down 50% in a single 24-hour period, falling from $7,700 to as low as $3,800.

Unsurprisingly, many traders were caught with tier pants down during this move, so to say, with crypto exchange BitMEX reporting that nearly $1 billion worth of Bitcoin positions (majority long positions) were liquidated in this massive capitulation lower.

This capitulation honestly feels like Bitcoin's drop in December 2018; hundreds of millions were liquidated, people are calling for $1,000 once again, etc.

The thing is, there's now a high risk of recession, something our favorite orange coin hasn't been through.

— Nick Chong (@_Nick_Chong) March 12, 2020

Don't wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today!
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!
This has left many wondering — what pushed the crypto market so far lower? And, more importantly, what comes next?

Why Did Crypto Crash? 

Per a blog post written by Changpeng “CZ” Zhao, CEO of the world’s largest crypto exchange Binance, it had much to do with panic-selling and a rush to the door by investors across the world, who were seeking liquidity above all else:

“The proportion of each type of investor in the market is unknown to anyone. It changes over time too. Their relative strength or conviction to sell/buy is dynamic too. When the stock market crashes hard, more people will feel the cash crunch to a higher degree and, hence, a stronger conviction to sell crypto in the short term as well.”

Bitcoin To Soon Be On the Mend

Although the liquidity issues that caused Bitcoin and cryptocurrencies to trend lower according to CZ could persist, there are signs that the crypto asset will be on the mend for the foreseeable future. Namely, there are fundamental signs that show BTC is starting to deviate from financial markets, showing strength due to its characteristics and its relatively uncorrelated nature.

For instance, Su Zhu of Three Arrows Capital, remarked that Bitcoin could soon surmount its new all-time high. As to why he thinks such explosive growth can take place in such a short amount of time, Su looked to the fact that several emerging markets are “now pricing in significant risk of sovereign defaults.” Su Zhu added that with the U.S. dollar set on a course for inflation “it will be hard to turn back from,” which has been corroborated by trends in the bond market.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?

This is in theory the moment Bitcoiners have been waiting for

Several EM mkts are now pricing in significant risk of sovereign defaults

USD itself set on an inflationary course it will be hard to turn back from

If $BTC mkt holds these lvls, 50K relatively quickly is possible https://t.co/CSSXEuNGyd

— Su Zhu (@zhusu) March 18, 2020

All this gives the decentralized and disinflationary Bitcoin a chance to shine.

Furthermore, Hunter Horsley, CEO of Bitwise Asset Management, sees the following reasons why BTC and the rest of the crypto-asset market could soon outperform equities:

  • Bitcoin has started to decouple from traditional markets, proving that it may act as a safe haven in the ongoing crisis.
  • 72% of Coinbase clients are buying BTC, per data from the company itself.
  • The Bitcoin block reward halving is 50 days away.
  • Billions of dollars will soon enter this market “when levered longs return.”
  • Central banks have printed trillions worth of dollars to stimulate the economy, setting the stage for inflation that may benefit cryptocurrency.
Featured Image from Shutterstock
Tags: Binancebitcoin pricechangpeng zhaocryptomarket
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Related Posts

Bitcoin

Bitcoin Liquidity Crisis Gets Worse, Here’s What It Means For Price

13 mins ago
Dogecoin

Dogecoin (DOGE) Makes Slight 6% Climb This Week – Here’s Why

2 hours ago
Bitcoin Nears $29,000 As Fed Rate Hike Brings Clarity To Market

Bitcoin Nears $29,000 As Fed Rate Hike Brings Clarity To Market

11 hours ago
Ethereum

Ethereum Bullish Signal: $560M In ETH Exits Exchanges

13 hours ago
Solana

Solana Price May Fall To $21 Before It Stages Another Recovery

14 hours ago
LUNC burn

New Proposal Wants To Burn All Coins In LUNC Oracle Pool, Will This Help The Price?

16 hours ago

Premium Partners

Play Finance

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

Litecoin (LTC) and Dogecoin (DOGE) Drowning in Controversy While TMS Network (TMSN) Steals the Show

March 24, 2023

The Best Altcoins To Get In Early 2023: TMS Network (TMSN), TRON (TRX) and Mask Network (MASK)

March 24, 2023

The Web3.Conference will gather Web3 builders & creators this May in Amsterdam

March 24, 2023

LFi Unveils LFi Smartphone, Providing Unprecedented Access to Decentralized Financial Opportunities

March 24, 2023

Cardano (ADA) and Polkadot (DOT) Prices Reach a Crucial Juncture, While TMS Network (TMSN) Attracts Investors in Stage 2 of Presale

March 24, 2023

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Links

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2022 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play Games
  • Play Casino Games
  • Free Spins
  • Play Finance

© 2022 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.