Bitcoin (BTC) Price Plummets Over $2,000 in One Hour, Causing Market Volatility
Bitcoin (BTC) experienced a sudden and significant drop in price on May 10, shedding over $2,000 in just one hour. This unexpected wave of volatility disrupted what had been a relatively quiet market, catching leveraged long traders off guard.
Data from Cointelegraph Markets Pro and TradingView revealed that BTC price plummeted from a high of $63,494 to an intra-day low of $60,308. As of the time of writing, the flagship cryptocurrency had lost more than 2.5% of its value over the last 24 hours.
Market analysts and traders were quick to react to the sudden crash. MN Capital founder Michaël van de Poppe noted that Bitcoin’s recent price action indicated a period of low volatility and choppy movement since February 29. He suggested that if Bitcoin fails to hold its current support level, the cryptocurrency could drop further to the $52-55K range.
Popular trader Daan Crypto Trades attributed the flash crash to $60,000 on May 9 as a move to “punish those longs that aped in above $63K.” However, traders who were betting on a continuation of BTC’s recovery above $64,000 suffered significant losses on May 10, with $127 million in long positions being liquidated amid a total wipeout of $175.17 million in just 24 hours.
The latest drawdown also saw $9 million in BTC leveraged positions being liquidated in the span of just one hour, with $6.36 million of these being long positions.
Overall, the sudden drop in Bitcoin’s price highlights the continued volatility in the cryptocurrency market and serves as a reminder of the risks involved in trading and investing in digital assets. Traders are advised to conduct their own research and exercise caution when making investment decisions.
