Bitcoin over the weekend surged to a peak of $107K, but an unexpected drop to $102K led to $680 million in liquidations. Experts point to the actions of large players and macroeconomic factors as reasons for the sharp volatility.
Last weekend, Bitcoin showed significant growth, breaking through the key resistance level of $105K and reaching a peak of $107K. This caused a wave of optimism among traders, many of whom expected the upward trend to continue and a new all-time high to be reached. However, a swift correction followed: the price of the first cryptocurrency fell to $102K, leading to massive liquidations in the market. According to analytical platforms, the total volume of liquidations over the day amounted to $680 million, primarily due to margin positions with high leverage.
Analysts note that such a sharp price movement could have been triggered by the actions of large players, the so-called 'whales', who took profits after reaching a local maximum. This is confirmed by a surge in activity on major crypto exchanges where significant bitcoin transfers were recorded. Additionally, the market continues to be affected by macroeconomic factors, including uncertainty around US monetary policy and changes in crypto industry regulation. For example, recent US administration statements on easing crypto regulation may have stirred investor interest, but instability in global markets limited sustained growth.
The massive liquidations caused by the correction mainly affected traders using high leverage. This highlights the risks of margin trading in high volatility conditions. Experts advise investors to exercise caution and avoid excessive use of borrowed funds. Meanwhile, some analysts see the current correction as healthy for the market, as it helps avoid overheating and lays the foundation for more sustainable growth in the future.
Despite the recent drop, Bitcoin remains in an upward trend, supported by institutional investor interest and the development of blockchain technology infrastructure. Analysts forecast that if the $100K level is maintained, the cryptocurrency could resume attempts to reach new highs. However, short-term risks remain, including potential regulatory changes and fluctuations in traditional financial markets. Investors are recommended to closely monitor news and data on major cryptocurrency movements.