Expert Predicts Bitcoin Will Hit $150k as Crypto Traders Lose $900 Million in 24 Hours
- With $900 million lost in a single day, the cryptocurrency market has suffered a major setback
- Out of the liquidations, $764 million came from long bets and $124 million from short positions
- A cascade effect can occur when thousands of positions are liquidated all at once, significantly altering prices
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
Data by Coinglass has shown that the cryptocurrency market has experienced a significant loss, with $900 million being lost in 24 hours.
Source: UGC
According to the report, long positions accounted for $764 million of the liquidations, while short positions accounted for $124 million.
Due to the possibility of positions being aggressively terminated by the exchange's risk engine once they hit the liquidation price, the liquidations brought to light the risks that traders on unregulated Bitcoin derivative exchanges confront.
A few liquidations may not have much of an effect on the market, but thousands of positions liquidated at once can shift prices dramatically and create a "cascading effect" that may liquidate more nearby holdings.
Bitcoin falls to lowest in months
On Monday morning, however, the price of Bitcoin saw another decline, falling to $53,000 on Binance, the lowest since late February of this year.
According to Coinglass, a number of reasons, including as growing market volatility, investor withdrawals, and uncertainty in the US economy, are to blame for the cryptocurrency's fall.
Experts speak
When discussing the current status of Bitcoin, cryptocurrency investment researcher Okoro Nnamdi mentioned a much-anticipated liquidation because of the development of a "cup and handle" pattern in technical analysis.
Given that the price is anticipated to increase over the resistance level created by the cup's top, the cup and handle pattern suggests a possible breakout to the upside.
Nnamdi told The PUNCH,
“The liquidation is highly expected because Bitcoin is building what we call in technical analysis a ‘cup and handle’ formation. However, it is trying to close the CME (Chicago Mercantile Exchange) gap—a price gap on the CME Bitcoin futures chart—and consolidate for about two months before flashing a warning sign of a potential upside move.”
Nnamdi maintained his optimism about Bitcoin's long-term prospects despite the anticipated liquidation, establishing a target price of $150,000 for the cryptocurrency by 2025.
“Overall, my target in Bitcoin going into 2025 is $150,000. The institutions are using this opportunity to accumulate the deep,” he added.
Adewale Kayode, a blockchain expert and team head at SIRFITECH, told The PUNCH that the decline started a few days ago when the Bank of Japan raised interest rates for the first time in thirty years, from 0% to 0.25%.
According to Kayode, investors throughout the world have been taking out loans at zero per cent interest from the BOJ to finance their investments in risky assets like loans, equities, and research.
He clarified that as a result of the rate hike, investors are quickly repaying their loans to the BOJ out of fear of future rate hikes, which would cause a significant outflow of money.
SEC issues new guideline to cryptocurrency dealers
Legit.ng earlier reported that the Nigerian Securities and Exchange Commission (SEC) had amended the regulations on digital asset issuance, offering platforms, exchange, and custody.
The SEC sent a formal notice to the public outlining its plans to alter these important rules.
The purpose of the amendment process is to improve the regulatory framework by making it more thorough and adaptable to the intricacies of digital asset markets.
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Source: Legit.ng
