According to Skew data analysis provider on February. 26, more than $ 150 million in Bitcoin was liquidated on the BitMEX trade show, most seen since the new year began. Millions of dollars in long and short positions caused the value of the cryptocurrency to fall to $ 8,580, a decrease of more than 6%.
Although the price of Bitcoin slightly returned to $ 8,813, this can be a difficult recovery for the cryptocurrency. The market value fell nearly $ 300 in an hour on February. 16, bringing BTC well below $ 10,000.
Traders are already preparing for the possibility that the cryptocurrency value may drop below $ 8,000. This can influence the impression of Bitcoin before the next half-event, scheduled for the week of May 18.
However, some observers are more optimistic. Tom Lee, co-founder of Fundstrat Global Advisors, predicted that the Bitcoin price would rise to more than $ 27,000 this summer based on the 200-day moving average.
Many crypto exchanges and blockchain technology companies have felt the impact of the potential global epidemic of COVID-19, also known as the corona virus. Employees of Chinese companies responsible for mining are forced to stay at home or to be imprisoned outside cities because quarantines are maintained.
Whatever the reason for the recent fall in Bitcoin, this incident serves as a reminder that the cryptocurrency market can be just as vulnerable as traditional investments. The price of XRP crashed by nearly 60% on BitMEX in February. 15.