Why did bitcoin suddenly wipe out all of this year’s earnings? Boom Bust RT has the answer – RT Business News

The world’s largest cryptocurrency dive by market cap, bitcoin, wiped out millions of dollars from the crypto market earlier this week. Boom Bust RT digs into the reasons behind the steep descent.

After a strong start to 2021, when we saw bitcoin breaking records daily and even hourly, the price of the cryptocurrency has faced wild swings. On Friday, it plummeted below $ 30,000 for the first time in nearly three weeks, but recovered some of those losses since then and was trading at around $ 31,900 on Saturday.

“There are a few reasons why bitcoin fell so heavily, so suddenly,” Christy Ai from Boom Bust explains RT. “First you have the options market that was already overheating … Second, we have a critical resistance level error out of the 35,000 rejected again for the third time,” he said.

Most of the panic sales came from leveraged traders, which caused a domino effect in the market, Christy Ai noted. He further added that larger investors may still view the recent price fluctuations as a buying opportunity, while more and more major players on Wall Street are flocking to bitcoin for use as a hedge against massive leverage measures.

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