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Tuesday, March 2, 2021

Bitcoin Faces Biggest Sell-Off Of The Year, Plunges 19%

The rollercoaster weekend triggered a volatile situation for Bitcoin, the leading cryptocurrency in the market. The digital coin began a race following Tesla’s announcement of including Bitcoins in their transaction modes. It went from $55,000 to approximately $58,000 within a short span. However, what came afterward has stirred up the market further.

Since Monday, February 22nd, the leading coin is going through a severe plunge. BTC prices have shrunk beyond expectations. Though the coin continues to trade above $53,000, it witnessed a 19% plunge within two days. Though the prices have stabilized currently at around $54,000, the violent sell-off witnessed since Monday was, reportedly, the biggest sell-off this year in dollars.

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Recent reports tell us that BTC’s 24-hour trading range is $47,780.75 to $47,943.85. As per 21:00 UTC, BTC is trading at $53,884.35 today.

Analysts Warn About The Volatility Of The Bitcoin Market

Market analysts recently reported that there was a massive influx in Bitcoin exchange platforms. Investors who were motivated by the shooting prices, went on to make more profits out of their BTC holdings. The amount of BTC exchange influx was a clear indication of a sharp correction, reports crypto analysts.

Analysts further state that another major indicator of this correction was when the “Coinbase Premium” ran into the negatives early on Monday. The BTC/USD gap tracker going negative was a clear indicator that the digital coin was becoming a lackluster demand of institutional investors.

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Arcane Research’s Head, Bendik Norheim Schei mentions that Monday’s sell-off was the “result of overconfident traders with unsustainable leverage”. He further analyses that the correction was coming because of several issues such as a high futures premium, an over-leveraged market, and an overrated bull run. He claims that despite the price rise the market is not going through an uptrend currently.

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