- Bitcoin (BTC) tanked over 7% from its peak in the past 24 hours from $69K to $64K.
- It created a ripple that washed out nearly half a billion dollar positions in the cryptocurrency market.
- Economist Peter Schiff warns investors to brace themselves for more dips.
The Wave of Liquidations in Bitcoin
Bitcoin just bled red candles today, dragging along the entire cryptocurrency market. The leading crypto asset by market cap slumped from today’s high of $69,889.14 down to a $64,586.59 low, showing a difference of 7.58% or $5,302.55 between the prices. As of this writing at 4:00 PM UTC on Tuesday, it’s still trading at the $64,600 mark with a drop of more than 4% on the 24-hour chart, which may continue to slide further below if it breaches its new critical support this week.
Interestingly, the trading volume of the digital asset saw a rise of over 55% as $48.30 billion worth of BTC moved between addresses. Most of these transactions can be attributed to the ensuing series of huge liquidations triggered during the crypto’s dip.
Based on Coinglass data, around $467.92 million worth of positions were liquidated in the crypto market from around 139,003 traders in the 24-hour frame. Bitcoin accounted for $155.49 million of these numbers as $107.88 million longs and $47.61 shorts were cleared during the wave. Ethereum (ETH), on the other hand, recorded $114.77 million in liquidations with $86.96 million longs and $27.81 shorts burned.
Peter Schiff Shills
So almost every time Bitcoin drops, shills like Peter Schiff just never fail to take every chance they can get to spread FUD (fear, uncertainty, and doubt) about it. The economist and Chairman of SchiffGold warned that a larger decline could be on the horizon and Bitcoin exchange-traded fund (ETF) holders could be in trouble.
Previously, Schiff also criticized the preference of young investors for Bitcoin instead of more traditional assets like gold. He said that because of their sheer ignorance and inexperience, they are easily lured by the digital asset’s seeming outperformance of the precious metal. The economist added that eventually they will realize their mistakes and see the true value of gold.
While Schiff has always been biased toward gold and antagonistic toward cryptos, particularly Bitcoin, dismissing his caution outright could prove costly should his prediction take effect. So, a safe bet during this time when extreme greed in the market runs high is for investors to diversify their holdings.
However, with the Bitcoin halving inevitably slashing BTC supply after April 20 amid the rising institutional demand for the crypto asset, most analysts are optimistic toward the potential rise of BTC to new heights in a couple of months with even a $200K target set for 2025. With that, exercise due diligence as you weigh your options and risk appetite in these crucial moments.