In the past 12 hours, the cryptocurrency market has seen a significant shift in prices, with Bitcoin taking a major hit. Trading between $27,000 and $30,000 for some time, Bitcoin suddenly fell to $27,214, resulting in an 8.48% decline. The cause of this sudden drop is unknown, but speculations have arisen.
Following news of First Republic Bank's problems, Bitcoin's price increased to $30,000 after trading between $27,000 and $30,000. However, the news had a negative effect on First Republic Bank's shares, causing its stock price to drop by 30% to $5.69. Later in the evening, Bitcoin experienced another sudden drop, falling to $27,214 in a short period, representing an 8.43% decline.
The Ethereum price followed suit with Bitcoin, falling from $1,946 to $1,783 due to Bitcoin's sudden price drop. Currently, Ethereum's price is around $1,898. This sudden drop in Bitcoin's price resulted in approximately $200 million in liquidation in just one hour, with the majority of the liquidations being from long positions, totaling over $157 million. The majority of these liquidations (97%) were related to Binance's long positions.
Although the exact reason for this drop is unknown, various speculations have emerged. At first, investors attributed the drop to Bitcoin transfers related to Mt Gox and the US government, but this rumor was debunked. It appears that these price movements will continue for some time, with various factors such as the global economic balance, bank crises, wars, and more continuing to affect Bitcoin's price.
