Why Bitcoin Crashed ? It Can Be again Jump ! Top Tips on NFTs
Bitcoin fell by $10,000 within minutes a week ago - dragging lower all of those other crypto markets by using it.
Why did this happen, and just what will it mean for that bull run?
Blockware's lead insights analyst, Will Clemente, describes an ideal storm of "low liquidity" and amounts of open curiosity about the futures market. As prices fell, a "cascading effect" brought to vast amounts of dollars in BTC lengthy positions being liquidated - creating carnage for traders. Explaining how leverage works, he stated:
"If I am 10x lengthy, which means the cost has only to visit lower 10% and I am out. If I am 20x lengthy, the cost has only to visit lower 5% and I am liquidated … One individual will get liquidated, then that puts a forced sell to the book that pushes prices further lower … ...