News Bit: Bitcoin Briefly Plunges Below $20k as Crypto Rally Reverses Course

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Bitcoin hovers below $20,000:

  • Bitcoin recently dropped in value and briefly went below $20,000. This happened after U.S. President Joe Biden made an announcement about the country’s budget, which caused some uncertainty in the cryptocurrency market.
  • Additionally, a bank called Silvergate, which provides services to companies that use cryptocurrency, announced that it was going out of business. This also contributed to the drop in Bitcoin’s value.
  • However, after reaching a low of $19,945 on March 10, Bitcoin’s value started to go back up and stayed above $20,000.

Liquidations:

  • According to Coinglass data, over the past 24 hours, cryptocurrency traders lost around $307 million due to liquidations.
    • This means that their trading positions were automatically closed because the value of the cryptocurrency they were trading dropped too low.
  • Bitcoin traders lost the most money, around $112 million, while ether traders lost over $73 million. Most of the positions that were closed were long positions, meaning the traders were betting that the prices would go up.
    • This suggests that many traders were expecting the prices to rise, but instead they dropped.

The latest liquidation report from CoinGlass:

More information:

  • However, experts believe that investors in the cryptocurrency market had already expected this news and had priced it in, meaning that the drop in value wasn’t as large as it could have been.
  • The drop in value did deepen after another bank, called SVB Financial, announced that it needed to raise a lot of money to make up for losses it had experienced. Although this bank doesn’t have much involvement in cryptocurrency, some people still linked the two events and this caused the value of Bitcoin and even Ether to go down even more.

This is a developing story.

This article is published on BitPinas: Bitcoin Briefly Plunges Below $20k as Crypto Rally Reverses Course

Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.

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BitPinas is the oldest blockchain and cryptocurrency news outlet that covers the Philippine blockchain and crypto scene. We are also writing general and international blockchain topics that are relevant to our audience.