Relax, Bitcoin is going to be ok, even if BTC lost 13% in 8 hours

Bitcoin experienced a sharp decline of 13.7%, dropping to $105,000 within eight hours, leading to significant liquidations amounting to $5 billion. This volatility underscores ongoing risks in a market shaped by increased leverage and liquidity stress. Historically, such crashes are not uncommon for Bitcoin, with over 48 prior days featuring deeper intraday corrections. The aftermath of such rapid price shifts reveals that many traders faced forced liquidations when portfolio margin systems failed, exacerbating the impact of illiquid collateral assets. Recent market behavior indicates that market makers are acting cautiously amidst rumors of insolvency and low liquidity conditions, particularly with the upcoming US national holiday. This situation suggests that it may take time for markets to stabilize, and despite the volatility, traders are left to speculate whether Bitcoin has found a support level or is poised for further declines.

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