• BTC long liquidations rose to seven-month high following Silvergate Capital uncertainty.
• CryptoQuant analysts warn further BTC price drop and possible capitulation.
• Stablecoin outflow from exchanges and Delta Cap metric suggest potential new lows for BTC price.
BTC Long Liquidations Reach Seven-Month High
Following the sharp decline in Bitcoin’s [BTC] price in the early trading hours of 3 March, long liquidations soared to a seven-month high, data from Coinglass showed. The drop in value was triggered by apprehension and uncertainty regarding Silvergate Capital, a financial institution recognized for its supportive attitude toward digital currencies.
Analysts Warn Further Price Drop
CryptoQuant analyst caueconomy found that these long liquidations were the third such event since the Terra/LUNA crash in May 2022 and the second following the fallout of cryptocurrency FTX in November 2022. Another CryptoQuant analyst with the pseudonym CryptoOnchain has opined that the king coin’s price might drop further due to an increase in coin distribution by short-term holders as well as stablecoins outflow from exchanges. Joao Wedson assessed BTC’s Delta Cap metric and found that a price bottom is formed when the coin’s market capitalization crosses with its Delta Cap, which could lead to a significant drop in BTC’s price if it crosses again.
Bitcoin Profit Calculator
To benefit from Bitcoin’s recent price growth so far this year, investors can use a Bitcoin Profit Calculator to assess their portfolios before making any decisions on investments or trades related to cryptocurrencies or other digital assets. This calculator provides users with an estimation of their profits or losses derived from investments or trades made using cryptocurrencies like Bitcoin (BTC). It takes into account factors such as current market prices, trade amounts, fees associated with each trade, and more to provide users with an estimate of their potential profits or losses over time.
Considerations For Investors
Investors should be aware of possible risks related to investing or trading cryptocurrencies such as Bitcoin (BTC). These include extreme volatility of prices and changes in market sentiment which can lead to sudden drops in values of digital assets. Additionally, investors should be aware of security threats associated with investing or trading cryptocurrencies such as hacking attempts that could result in loss of funds if not properly secured against malicious actors. As always, it is important for investors to do their own research before getting involved with any type of investment transaction involving digital assets like Bitcoin (BTC).
Conclusion
The recent rise in long liquidations due to uncertainty surrounding Silvergate Capital indicates that there may be further drops ahead for Bitcoin’s (BTC) price despite its current rally above $25K USD per coin at press time. Analysts have warned investors about possible capitulation events that could cause even steeper declines while also noting increased activity among short-term holders leading up this point indicating profit taking behavior after recent gains have been achieved by some traders who got into positions earlier on during 2021’s bull run for cryptocurrency markets overall . Investors interested in getting involved should always exercise caution and conduct their own research before committing any funds into buying or selling positions involving digital assets like Bitcoin (BTC).