Bitcoin price’s recent drop of over 7% in the last 24 hours led to a $256 million loss for investors holding long positions in the futures market. However, analysts believe that despite escalating geopolitical tensions in the Middle East, this is not an unusual situation. Benjamin Cowan stated through platform X that such drops are normal and that several declines of around 20% have occurred in previous cycles.
Painful Picture in the Futures Market
During this period, MicroStrategy CEO Michael Saylor expressed in an article shared on platform X on April 13 that such chaos is good for Bitcoin. Meanwhile, crypto investor and analyst Rekt Capital believes that Bitcoin’s price will continue its upward trend. Rekt shared the following statement:
“Bitcoin, will experience a deep pullback convincing enough to make you think the bull market is over.”
On April 13, Bitcoin’s price found support at the $62,060 level after dropping to $60,919. According to Tradingview data at the time of writing, Bitcoin’s price was $63,858.
The sudden price drop led to a total liquidation of $319.15 million in Bitcoin futures positions in the last 24 hours. According to CoinGlass data, $256.58 million of this amount came from long positions, while $62.58 million came from short positions. Investors seem to be preparing for further declines. If Bitcoin’s price returns to the $67,000 level it was at just 24 hours earlier, a total of $1.05 billion in short positions could face liquidation.
Noteworthy Data for Bitcoin
In the last 24 hours, the entire cryptocurrency market suffered widespread pain as $945.9 million was liquidated from 253,554 investors. The fear and greed index, a significant tool tracking market sentiment in crypto markets, is currently at a greed level of 72, showing a slight decrease from last week’s extreme greed score of 78.
The global crypto market cap also fell by 8% to $2.23 trillion. During this period, data shared by crypto analytics firm CryptoQuant indicated that for the first time, demand from permanent holders exceeded the market supply of new Bitcoin. This suggests that the amount of new Bitcoin produced through mining is insufficient to meet the demand of crypto investors and that scarcity is expected to increase further after Bitcoin’s halving event.
