Bitcoin’s relatively high volatility has always attracted investors' awe and ire. The recent turmoil caused by Bitcoin price fluctuations is an example of this phenomenon.
After a 7% price rally, Bitcoins valuation crossed $30K on April 26th Wednesday. This has been its peak value for the week. It seemed then that the markets were in a grip of positive sentiment.
However, within an hour the price of BTC dropped to $27K. In an hour, Bitcoin had lost all the gains it had made in the week. The cryptocurrency found support at the $27K mark and started rising again touching $29K.
Within that hour investors interchanged long and short positions multiple times. Unfortunately, the spree wiped out $361.82 million as per Coinglass data.
This kind of volatility is always seen when the price of Bitcoin begins to rise. The markets initially blamed Mt Gox and United States government bitcoin sales for the steep price drop. Arkham, the source of this theory has now retracted the claims.
The clarification came as reliable sources pointed out that the price drop happened between 19:17 and 20:01 UTC. The alerts were tweeted a few minutes after the drop at 20:07 UTC and 20:08 UTC respectively.
Experts pointed out the Bitcoin valuation trend. They said that every Bitcoin rallies for a few weeks, its price gets volatile and the market reacts in an unexpected manner. For the long-term investor, they pointed out that the value of Bitcoin has increased 70% year-to-date.
