• The Bitcoin price experienced a drastic downward movement in the early morning hours of March 3, causing it to drop to around $22,000.
• Over $62 million in long BTC positions were liquidated in a matter of hours and this was the third liquidation cascade within the last 12 months.
• Despite the recent price correction and negative headlines, the fundamentals of the Bitcoin network remain stable.
Price Drop
The Bitcoin price experienced a drastic downward movement in the early morning hours of March 3, causing it to drop to around $22,000 in a very short time. This confirmed one forecast in particular: namely the forecast that the Bitcoin course was about to make a directional decision. The cryptocurrency has trended about 4 percent weaker over the past 24 hours of trading, marking the biggest bitcoin sell-off so far this year. An event that many investors could not count on.
Liquidation Cascade
Over $62 million in long BTC positions were liquidated in a matter of hours. This was the third liquidation cascade within the last 12 months: after the Terra crash and FTX bankruptcy in 2022. How to proceed now? Forecasts are extremely difficult as some talk of an oversell which should level off again while others see potential for temporary price recovery due to positive signs on US stock markets shortly after this crash underline this scenario.
Investment Recommendations
While these events should hardly change anything for professional investors, it is somewhat different for new investors: For new investors investing larger amounts into crypto markets are recommended entry instead of investing with whole Bitcoins.
Network Activity
Despite recent negativity seen in headlines, fundamentals of Bitcoin network remain stable as Network activity shows that hash rate continues to rise despite falling prices since November 2021 amongst other factors such as increasing active addresses on network too.
Investment Strategy Moving Forward
Overall, situation for Bitcoin course will remain uncertain but investors should follow developments closely and adjust their investment decisions accordingly given both positives and negatives affecting prices at any given time frame