Bitcoin, the world’s most popular cryptocurrency, has experienced a significant downturn recently, leading analysts to sound alarm bells about what could happen in the near future. According to Jared Blikre, a financial analyst who spoke to Yahoo Finance, Bitcoin’s price could plummet to $13,000 if a major event were to occur.
Blikre warned that the recent collapse of the major trading platform Binance could be a “black swan” event that could trigger a significant downturn in the cryptocurrency market. This would cause Bitcoin’s value to drop sharply, leading to losses for investors who have put their money into this digital currency.
$BTC prices hover above $22,000 as fears surrounding $SI earnings begin to sink into the crypto space.
“When you have leverage built up in a system such as crypto, it can take a long time to deflate that,” @SPYJared says on recent crypto shakeups. pic.twitter.com/9MWlgjsc54
— Yahoo Finance (@YahooFinance) March 3, 2023
Recent reports from AZCoin News indicate that the price of Bitcoin has already dropped 5,5% in the past hour, hitting a low of $22,000 on the Bitstamp trading platform. Blikre noted that the latest drop in Bitcoin’s value was the largest red candlestick in more than two weeks, which could signal that the cryptocurrency is about to experience a significant decline.
One reason why analysts are so concerned about Bitcoin’s future is the recent liquidation of long positions by futures traders. According to reports, more than $203 million in long positions were liquidated in the past 24 hours, with over 96% of all positions being closed out.
At the time of writing, the price of Bitcoin is hovering around $22,380, but it remains to be seen whether the current downturn is just a temporary setback or the beginning of a more prolonged period of decline. Investors and traders are advised to be cautious and closely monitor the situation, as any major event could have a significant impact on the cryptocurrency market.
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