Many hope Tuesday’s halving of Bitcoin will push up the price of Bitcoin, but last night the largest cryptocurrency by market cap collapsed in value by 15%. The price has stabilized from Sunday afternoon … for now.
On Saturday night, Bitcoin’s price dropped from about $ 9,800 to lows of $ 8,518, according to metric site data CoinMarketCap. And one of the most popular crypto exchanges, Coinbase, went offline when whales loaded their Bitcoin into the market.
According to CryptoDiffera total of $ 1.22 billion was liquidated through stock exchanges. $ 368.13 million was swept from Huobi; $ 284.82 million from BitMEX; $ 282.20 million from OKEX; $ 280.96 million from Binance; and $ 1.5 million from FTX.
The flash crash has affected Bitcoin’s remarkable value recovery from the Black Thursday crash on March 12, when it was $ 22 billion wiped off of the market capitalization of Bitcoin within 24 hours. The past week was largely positive for Bitcoin (except yesterday’s crash); Bitcoin has reached the USD 10,000 mark several times since February.
The flash crash will certainly shake investor confidence in the currency, which is already notorious for its volatility. Some people have bought Bitcoin after forecasts that the price of Bitcoin will rise due to Tuesday’s halving of Bitcoin – when mining yields for miners will halve, limiting the supply of new Bitcoin. However, the price of Bitcoin fell last night.
Lately, the price of Bitcoin has been completely erratic. Analysts attribute a barrage of market forces – COVID-19, the stock market crash and the oil price war – to volatile movements.
Of course, only mystics can predict what will happen to Bitcoin’s price after Tuesday’s halving. But many have tried.
Some to predict that the price will rise after May 12 – as has been the case after previous halves – while others expect that the halving has already been priced in and not much will happen.
data shows that major investors were holding their Bitcoin before halving. Many new investors have also entered the market, who may see the dip in March as an excellent buying opportunity.
But no one, not even the “experts”, can predict the future. Roll on May 12.
The author’s views and opinions are for informational purposes only and do not constitute financial, investment or other advice.