On Wednesday morning, in an unexpected burst of volatility, Bitcoin crashed by $2000 in just 5 minutes, reaching a low of $56713 before recovering to where it currently sits at $57910.
Though painful to some, Amsterdam Trader, Michaël van de Poppe said in a tweet that the move was typical of Bitcoin.
Exactly #Bitcoin. pic.twitter.com/OpB5Z3jWba
— Michaël van de Poppe (@CryptoMichNL) March 31, 2021
In the crash, 600 million dollar worth of leveraged longs were liquidated. This includes traders that were expecting a break of the $60k price level.
In quant trader, Plan B’s opinion, this was necessary and healthy, helping to rid the market of unwanted leverage and ensure more organic future rises.
Beautiful stop loss hunting .. again. Now that all leveraged longs are liquidated, we finally have room for breaking $60K in April. pic.twitter.com/PgSVXUSAuA
— PlanB (@100trillionUSD) March 31, 2021
Victor Nnadi is an Independent Economics Researcher and a Securities Trader.
