- Bitcoin’s recent price dip below $55K has led to a huge loss of crypto investors’ funds.
- $1.62 billion long crypto positions liquidated within 24 hours.
- BTC dip also due to the weak buying pressure of institutional investors.
Bitcoin‘s recent price dip below $55K has led to a huge loss of crypto investors’ funds, with $1.62 billion long crypto positions liquidated within 24 hours. In a data provided by Bybt, 234,825 traders liquidated for a total of $1.62 billion over the past 24 hours,
According to CoinGecko, BTC trades a high price of $53,611 with a 24-hour trading volume of $59,327,333,784, at the time of writing.
Bitcoin’s Extreme Volatility is a Big Issue
In the past few weeks, the crypto market seems to be highly volatile and also over-leveraged. Specifically, this might be the result of the huge amount of liquidations in the crypto market.
Moreover, many investors started selling BTC to get their profits. As a result, BTC suffers a major dip due to the weak buying pressure of institutional investors.
Whale addresses holding 1,000 or more #bitcoin have been selling, this does not mean the bull run is over, it just means that profit taking is happening.
— Lark Davis (@TheCryptoLark) March 15, 2021
More so, In January, the Financial Conduct Authority (FCA) warned against purchasing cryptocurrencies without fully knowing the risks involved. In the statement, the FCA indicated the risks associated with investing in Bitcoin and other crypto-assets.
Recently one of the top investment banks globally, JPMorgan, released a research note and showed that the extreme volatility in Bitcoin is a big issue for large firms. For this reason, the adoption of institutions to Bitcoin has been slow.