RATE Group | Crypto Traders Explain What Caused the Bitcoin Price Plunge to $3,000s
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Crypto Traders Explain What Caused the Bitcoin Price Plunge to $3,000s

15 Mar Crypto Traders Explain What Caused the Bitcoin Price Plunge to $3,000s

Posted at 16:20h in Bitcoin News by

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The Bitcoin (BTC) price dropped to $3,600 overnight, marking Bitcoin’s biggest daily drop in the last seven years. Over $1 billion worth of longs was liquidated on March 12, causing one of the most intense long squeezes in the crypto market’s recent history.

The main catalyst of the sudden 50% decline in the price of Bitcoin within a span of eight hours was the 9.99% drop of the Dow Jones Industrial Average. The United States stock market experienced its worst sell-off since 1987, as panic over the coronavirus pandemic intensified to unprecedented levels.

In the past seven days, Bitcoin and cryptocurrencies in general have shown a high level of correlation with the U.S. stock market, possibly due to the overall drop in investor appetite for high-risk assets. The steep correction in the U.S. stock market together with a lack of buying demand as Bitcoin’s price fell to the low $5,000 levels ultimately led the price to decline to $3,600.

Traders explain the technical reason behind…

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