Bitcoin Hit $12k, Crashed to $10.5k--Is BTC’s Volatility Finally Back?

Monday, 03/08/2020 | 06:24 GMT by Rachel McIntosh
  • After months of stagnancy, it appears that Bitcoin is on the move again--however, what will happen next is unclear.
Bitcoin Hit $12k, Crashed to $10.5k--Is BTC’s Volatility Finally Back?
FM

After months of price stagnation, it seems that Bitcoin ’s famous Volatility could be making a big comeback.

Over the course of last week, Bitcoin finally broke through the $8,800 to $9,800 band that it had been stuck in for much of May, June, and July. At first, BTC hit $11,000, and then pushed past $12,000.

However, this push appeared to trigger a massive selloff; consequently, the price crashed back down to around $11k almost immediately. There are some data sources that show the price crashed to as low as $10,500. Fortunately, at press time, the price appeared to have stabilized at around $11,135.

Specifically, data form Bybt showed that the sudden price drop liquidated 72,422 positions, worth roughly $1.4 billion across a number of major exchanges. Additionally, as reported by CoinDesk, data from Skew shows that the price drop caused $144 million in sell liquidations and forced closure of long positions on BitMEX.

Bitcoin’s Previous Runs past $10k Have Been Followed by Significant Price Crashes

The bull run up to $12k and the subsequent crash seem to be part of an ongoing pattern of upward motion flowing past $10k followed by a crash.

Twitter user @CryptoWhale pointed out that Bitcoin “has only held above $10,000 two times in history. Both times were followed by a 70-80% crash.”

https://twitter.com/CryptoWhale/status/1288090731459092480

Still, the recent upward Bitcoin price movement appears to have re-energized traders in BTC markets. According to data from CoinMarketCap, Bitcoin's 24-hour trading volume has been fluctuating between $21 billion and $36.5 billion every day since Sunday, July 26th. Though previously, BTC’s trading volume had wavered between $15 and $16 billion for weeks.

Additionally, BTC’s market cap has grown and shrunk, which is almost directly parallel to its price. When the price reached $12,000, its market cap was roughly $220 billion. At press time, when BTC dropped to $11.1k, its market cap was $205 billion. Though, previous to its bull run past $11,000, BTC’s market cap sat between $160 billion and $180 billion.

After months of price stagnation, it seems that Bitcoin ’s famous Volatility could be making a big comeback.

Over the course of last week, Bitcoin finally broke through the $8,800 to $9,800 band that it had been stuck in for much of May, June, and July. At first, BTC hit $11,000, and then pushed past $12,000.

However, this push appeared to trigger a massive selloff; consequently, the price crashed back down to around $11k almost immediately. There are some data sources that show the price crashed to as low as $10,500. Fortunately, at press time, the price appeared to have stabilized at around $11,135.

Specifically, data form Bybt showed that the sudden price drop liquidated 72,422 positions, worth roughly $1.4 billion across a number of major exchanges. Additionally, as reported by CoinDesk, data from Skew shows that the price drop caused $144 million in sell liquidations and forced closure of long positions on BitMEX.

Bitcoin’s Previous Runs past $10k Have Been Followed by Significant Price Crashes

The bull run up to $12k and the subsequent crash seem to be part of an ongoing pattern of upward motion flowing past $10k followed by a crash.

Twitter user @CryptoWhale pointed out that Bitcoin “has only held above $10,000 two times in history. Both times were followed by a 70-80% crash.”

https://twitter.com/CryptoWhale/status/1288090731459092480

Still, the recent upward Bitcoin price movement appears to have re-energized traders in BTC markets. According to data from CoinMarketCap, Bitcoin's 24-hour trading volume has been fluctuating between $21 billion and $36.5 billion every day since Sunday, July 26th. Though previously, BTC’s trading volume had wavered between $15 and $16 billion for weeks.

Additionally, BTC’s market cap has grown and shrunk, which is almost directly parallel to its price. When the price reached $12,000, its market cap was roughly $220 billion. At press time, when BTC dropped to $11.1k, its market cap was $205 billion. Though, previous to its bull run past $11,000, BTC’s market cap sat between $160 billion and $180 billion.

About the Author: Rachel McIntosh
Rachel McIntosh
  • 1509 Articles
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About the Author: Rachel McIntosh
Rachel is a self-taught crypto geek and a passionate writer. She believes in the power that the written word has to educate, connect and empower individuals to make positive and powerful financial choices. She is the Podcast Host and a Cryptocurrency Editor at Finance Magnates.
  • 1509 Articles
  • 52 Followers

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