The cryptocurrency market has been experiencing fluctuations lately. The leading cryptocurrency Bitcoin (BTC) also gets its share of these fluctuations. In an extraordinary event on the BitMEX exchange on Saturday, March 18, the price of Bitcoin suddenly dropped by 87%, falling from $68,398 to $8,900. This shocking decline stunned investors and the cryptocurrency exchange. In this news, we will examine the reasons for this sudden decline and expert opinions about the future of Bitcoin.
Bitcoin price suddenly dropped
The leading cryptocurrency Bitcoin (BTC) continues to experience fluctuations lately. In an extraordinary event on the BitMEX exchange on Saturday, March 18, the BTC price suddenly dropped by 87%, falling from $68,398 to $8,900. This shocking drop followed a large sell order in the BTC/USDT spot market on BitMEX. Last night, while the BTC price was above $66,000 on other exchanges, it fell to $59,000 on BitMEX.
The abnormal volatility gradually continued and after each decline the price recovered to normal levels. But the last drop was the steepest drop, with BTC falling from $64,000 to $8,900. Fortunately, the recovery was just as rapid, with the BTC price soon rising back to $67,000.
What are the reasons behind the decline?
BitMEX stated in its statement from the X account that it reviewed large sell orders and detected unusual activity involving a user selling large orders in the BTC-USDT spot market in the last few hours. Some users claim that this sudden drop is due to a “whale” sale. A “whale” refers to an investor who owns a large amount of cryptocurrency and can make transactions large enough to impact the market.
In this case, a whale is thought to have sold over 850 BTC on BitMEX, pushing the XBT/USDT spot pair to $8,900. BitMEX emphasized that this event did not affect the derivatives markets or the index prices of the popular XBT derivative contracts. He also clarified that the platform is operating normally and all funds are safe.
Some investors are worried
Bitcoin’s recent fluctuations have investors worried. These sudden declines show how volatile and risky the cryptocurrency market is. However cryptokoin.com As we reported, some experts believe that Bitcoin’s upward trend will continue in the long term. Bitcoin’s limited supply and increasing adoption may contribute to its price rising even higher in the future. This extraordinary event on BitMEX shows how quickly and dramatically the cryptocurrency market can change. Investors should make their investments considering such risks.
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