Bitcoin price is still falling which causes a lot of worries among the traders. As on BitMEX and Bitstamp, it fell below $7,400, it has now seen its lowest points in the last four weeks and has crashed 50 percent since it’s year-long high in June.
The crypto market, like any other financial market, is subject to price changes and swings at certain times but it has become rather interesting to watch over the years. In its initial stages, it was predicted that Bitcoin and other cryptocurrencies would become worthless very quickly as they were nothing but internet fads. Even as Bitcoin saw several bull runs as well as two significant crypto winters, price speculation ranged from Bitcoin still becoming worthless to a token being worth $1 million at a certain point in time. Be as it may be, but the current moment is definitely not the best one for the coin.
It’s worth mentioning that on spot exchanges these days BTC hasn’t dropped below $7,500. At the moment of writing, it is trading at $7,590 having lost nearly 5.5% over the past 24 hours.
Longs Liquidation on BitMEX
It has also been revealed that after Bitcoin had significantly lost its value, $179.3 mln worth of longs were liquidated on BitMEX which is one of the most well-known derivatives exchanges. It is reported that the average leverage ratio was 25X. So, according to the calculations, such a move would lead to a total loss of around $6.5 mln.
*YELLS UPSTAIRS FROM THE BASEMENT* Mom! Tell Danny I can shovel his driveway today!
Also, can you cover Disney+ this month? pic.twitter.com/mRlhpk4ax7
— Jacob Canfield (@JacobCanfield) November 21, 2019
A couple of days ago, one of the traders on BitMEX told the community that he has a long position on BTC. However, now he may have already regretted having chosen this strategy as well as other long traders.
Rise and Fall
Back in June, in the context of all the noise around Facebook‘s Libra, crypto enthusiasts rejoiced when the price broke above $13,000 and many hoped that Bitcoin would go on to close out the year on this high. Unfortunately, it was not to be so as the price has seen a steady decline in the last few weeks and with the price falling below $7400 (on Thursday the price on Bitstamp was $7,394).
A number of factors cause the Bitcoin price to rise and fall and some believe that the surging in October 2019 was due to the announcement of China embracing more blockchain development following a statement from its President. This was a rather interesting development from China that has been famously anti-crypto and has a crypto ban in place and it seems the markets reacted well to the news.
There has also been speculation that the reason for the markets crashing on Thursday was the now-debunked reports of Binance’s Shanghai office being raided and closed down by authorities. Binance management has come out to deny the closure or even the existence of a Shanghai office that some speculate caused the market downturn.
As 2019 comes to an end, there is, naturally, anxiety about how the market will end as 2018 ended on a low note for Bitcoin and enthusiasts especially want the market to pick up as it enters 2020. With a few more weeks to go in 2019, only time will tell if the price will indeed recover or not.
Anna Lee is a crypto journalist who has been covering crypto-related news since 2018 and whose work has appeared in the Huffington Post and the Los Angles Free press.