March 28, 2023

Bitcoin Plummets to Lowest Levels Since January Amid Sell Pressure and Central Bank Policy

Bitcoin, the world’s largest cryptocurrency, has sunk back to lows not seen since January as ongoing sell pressure and hawkish central bank policy continue to weigh on the market. The digital currency fell below $21,000, triggering over $150 million in liquidations on a 24-hour basis.

At 14:19 UST on Thursday, Bitcoin traded for $21,811 before slowly sinking to $21,437 over the next four hours. However, beginning at roughly 18:22 UST, the cryptocurrency quickly tanked from $21,431 to $20,969 at 18:53 UST. At the time of writing, Bitcoin trades for $20,927.

According to Coinglass, the drawdown has triggered $46.32 million in liquidations in the past hour alone. $26 million worth of liquidations came from Bitcoin trades, with another $11 million from ETH-related losses. Over the past day, 49,562 traders have been liquidated for $159.17 million in total.

The largest single liquidation took place on BitMEX on an XBTUSD trade for an amount of $10 million. The sell-off was triggered by Silvergate Bank’s announcement that it would be suspending deposits and withdrawals for its cryptocurrency exchange clients due to a technical issue.

Furthermore, the hawkish stance of central banks around the world has also contributed to the sell-off. The US Federal Reserve has hinted at a possible interest rate hike in 2022, while the European Central Bank has signaled that it may slow down its bond-buying program.

The cryptocurrency market has been volatile in recent months, with Bitcoin reaching an all-time high of nearly $65,000 in April before plummeting to around $30,000 in May. The current sell-off has raised concerns among investors about the long-term viability of cryptocurrencies as a store of value.

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