An analyst explains why the value of Bitcoin dropped drastically to $22.2K in a short period of time.
It's possible that the cause of the recent crash is different than what many people think.
In the blink of an eye, the stock market saw a 5% crash today. According to the 5-minute chart, the crash occurred within a staggering 20 minutes. This sudden decline has alarmed investors, leaving them uncertain of what the future holds for the stock market.
- In a surprising turn of events, liquidations across the board have seen a considerable tick in the past 24 hours, currently standing at around $243 million. This move has caused shockwaves throughout the investment world, and market analysts are scrambling to identify the root cause of this jump in liquidations. While the exact reason for this increase is still being investigated, the news has left investors and traders alike anxiously awaiting further developments.
- In the midst of a tumultuous stock market crash, Intra-day trader and creator of delta-based trading systems 52Skew sought to provide clarity by taking to Twitter. 52Skew explained the reason for this particular crash and sought to provide insight into the current market situation.
BTC – well, no sharp squeeze up but sharp margin cascade here. What led to this move is a large binance spot sale directly into an area of stacked up longs. Margin call.
$BTC well no sharp squeeze up but sharp margin cascade here.
What led this move is a large binance spot sale directly into an area of stacked up longs.
Margin call pic.twitter.com/bkYRfCzkjS
— Skew Δ (@52kskew) March 3, 2023
CryptoPotato reported today that the price of Bitcoin plummeted in a matter of minutes, dropping from over $23,000 to $22,200. Analysts were quick to provide insights about the cause behind this sudden dip, with the most common explanation being a lack of liquidity combined with massive sell orders.