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Bitcoin price suddenly plummeted

Bitcoin price at dawn on April 7 suddenly dropped after a week of moving sideways around the threshold of 46,500 USD.

According to CoinMarketCap data, Bitcoin is trading at $43,700 per coin, down $3,000 from the previous day.

The last time Bitcoin price hit this level was on March 24. Over the past 24 hours, the Bitcoin price has dropped more than 5%, shrinking its market cap to $830 billion. However, Bitcoin recorded a relatively large trading volume, reaching $38.4 billion, up 25%.

Compared to the past 7 days, the Bitcoin price has dropped by a total of 8% and is back to where it started at the beginning of the month. However, compared to the peak of more than $48,000 in 2022, Bitcoin’s value has evaporated by 10%.

Bitcoin has fluctuated quite unusually since the end of March until now. The digital currency continuously fluctuates and was once expected by investors to prosper by setting a new peak in 2022.

Bitcoin corrected sharply this morning. Photo: CoinMarketCap.
Bitcoin price corrected sharply this morning. Source: CoinMarketCap.

This is also one of the periods when positions are liquidated the most. In the past 24 hours, Bitcoin’s price action has blown away nearly $500 million of investors and caused 156,000 users to be liquidated, of which long positions account for about 81%.

Among the 10 largest cryptocurrencies in the world, those with a larger 7-day decline than Bitcoin are XRP (10.7%), Cardano (9.17%), Avalanche (13.33%). However, Bitcoin is the coin with the most modest intraday correction.

According to CoinDesk, the cryptocurrency market fell after officials from the US Federal Reserve (FED) made some negative comments.

Recently, Fed Governor Lael Brainard affirmed the importance of measures to curb inflation, thereby alluding to the reduction of the central bank’s balance sheet in May. This information has triggered the momentum. sell-off in the market as investors worried that the restrictive financial environment could lead to an economic recession.

In addition, the less optimistic macro situation from the Fed also extinguished some supporting factors for the market, especially the recent purchase of large amounts of Bitcoin from funds.

On April 5, the investment fund MicroStrategy announced that it spent $ 190.5 million to buy 4,167 Bitcoins. Up to now, the fund has not sold any units holding nearly 130,000 Bitcoins.

In addition, on March 6, CEO Do Kwon – founder of Terra – also announced the purchase of an additional 5,040 Bitcoins worth $230 million for the purpose of building a reserve of escrow for stablecoin UST.