LONDON (IT BOLTWISE) – Bitcoin experienced significant volatility this morning, fueled by macroeconomic factors and massive liquidations. Despite a slight recovery, the price remains 3.8% lower compared to the previous day. These fluctuations raise questions about the stability of the cryptocurrency and have investors thinking about its long-term prospects.
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Bitcoin, the world’s most famous cryptocurrency, has experienced notable volatility this morning. The price initially fell by 6.8% within 24 hours before recovering slightly. Nevertheless, the value remains 3.8% lower compared to the previous day. These fluctuations are not unusual for Bitcoin, which is known for its high volatility compared to traditional asset classes.
A major factor in today’s movements is liquidations. Liquidations occur when leveraged positions are forcibly liquidated due to price movements that exceed a certain volatility threshold. In the last 24 hours, $3.33 million worth of Bitcoin positions were liquidated, almost bringing the total liquidation amount to $3.36 million. These liquidations can have a significant impact on the price in the short term.
In addition to the liquidations, negative headlines from the banking sector also contributed to the volatility. Reports of problems at regional banks and concerns about credit quality have increased uncertainty in markets. These macroeconomic factors have further unsettled already nervous investors.
In the long term, however, Bitcoin remains attractive for many investors. Despite the short-term fluctuations, some experts see cryptocurrency as a promising investment. The fundamental metrics such as transaction volumes and the launch of new applications on the Bitcoin blockchain remain positive. These factors could lead to a stabilization and a renewed increase in the Bitcoin price in the long term.
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