Bitcoin falls 20% from YTH high with further 5% daily drawdown in cascading liquidation event (Cryptoslate)
Quick Take
Recently, Bitcoin’s price broke below the $39,000 threshold, marking a noteworthy 20% reduction from its yearly high of $49,000. This event signified one of the most significant drawdowns in the current cycle, illustrating the inherent turbulence of this asset class.
Bull Market Correction Drawdowns: (Source: Glassnode)
Historical data shows during bull market corrections, drawdowns can reach as much as 30%, emphasizing the significant risk and reward ratio in digital asset investments. Moreover, within the first month of 2024, Bitcoin witnessed three daily drawdowns of around 5%. Of these, the Jan. 22 event fell short of the 2024 record 7.5% single-day drawdown experienced on Jan. 12.
Daily Price Performance: (Source: Glassnode)
Over the past 24 hours, the digital asset market experienced $330 million in liquidations, with Bitcoin accounting for approximately $90 million. Notably, $77 million of Bitcoin’s liquidations were from long positions. The last hour saw $100 million in liquidations, predominantly long positions, according to Coinglass.
The post Bitcoin falls 20% from YTH high with further 5% daily drawdown in cascading liquidation event appeared first on CryptoSlate.
from RSS Cryptocurrency News feed https://cryptoslate.com/insights/bitcoin-falls-over-20-from-yth-high-with-further-5-drawdown-in-cascading-liquidation-event/