The bitcoin price quickly dropped below $50K hours ago, before it started trying to recover back above $47,000.
The rapid movement in the bitcoin price caused a massive liquidation in the process.
Bitcoin’s decline continues after experiencing a sharp price drop over the past few hours.
The drop caused the liquidation of long positions worth more than $200 million.
Earlier today, bitcoin briefly reached $57.5K at 8:44AM ET, after trading stagnated within the $56-57K range.
Then the price suddenly dropped after that, dropping by thousands of dollars an hour.
According to BitStamp, Bitcoin has fallen to $42,000, while Binance Futures has seen the price drop to $42,000.
Since then, the price has rebounded slightly, and is trading at $47,000 at the time of writing this article.
This means that Bitcoin is trading at less than $1 trillion in total market capitalization.
There have been disastrous consequences for these rapid movements in the bitcoin price.
Data from “glassnode” shows that $112.4 million in long positions were liquidated within ten minutes of the start of the decline.
Coinglass appears to have liquidated $221 million in the last 4 hours, the largest bitcoin liquidation since early September.
Bitcoin’s fall appears to be related to the stock market.
The Nasdaq closed in the red today, with a drop of nearly 2% after a very bad week.
Indicators continue to favor the medium to long term bullish outlook for Bitcoin, in the form of an extended bull market despite the pullback.
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