Bitcoin seems to be riding a rollercoaster lately, taking a significant dive and leaving some traders with a serious case of whiplash! Over the weekend, the crypto giant held its ground at around $86,000, but the bears came out to play, dragging it down to a low of $80,000. That's a double-digit drop, folks!
As BTC stumbled, it caught quite a few over-leveraged traders off guard, with more than 220,000 of them feeling the squeeze. The liquidation party totaled around $620 million in just 24 hours. Bitcoin alone accounted for a hefty $240 million of that, with Ethereum and Ripple chipping in $108 million and $30 million, respectively.
The biggest hit came from a single liquidation order on Binance involving the BTC/USDT pair, making one unfortunate trader $32.09 million lighter. Ouch!
But hold on to your hats, because Bitcoin made a bit of a comeback, bouncing back to around $82,500. Still, it’s been a tough week and month for BTC, keeping it deep in the red despite this little recovery.
What's got everyone scratching their heads is this dip comes after some positive vibes from the White House. President Donald Trump signed an executive order to create a strategic Bitcoin reserve and a Digital Asset Stockpile. The catch? The government plans to hold onto seized cryptocurrencies rather than splurging on new ones.
This situation might have led to a “sell the news” effect, where traders cashed in on the hype instead of riding it to new heights.
And brace yourselves, because the week ahead could bring more turbulence. March 12 marks the release of February's CPI data by the US Bureau of Labor Statistics. The Federal Reserve watches this data closely to decide what to do with interest rates. Historically, those decisions have sparked some wild rides in Bitcoin’s price. So, buckle up, crypto enthusiasts!
