On the evening of Saturday, April 13, the price of the leading cryptocurrency fell below $61,000 amid escalating tensions in the Middle East.
The following day, digital gold recovered to levels above $64,000. At the time of writing, Bitcoin is trading at $64,600.
The total cryptocurrency market capitalization stands at $2.45 trillion.
Following Bitcoin, other digital assets also plummeted. Many of them partially recovered by the morning of April 14. Over the past 24 hours, XRP (-9.1%) and Dogecoin (-7.8%) suffered the most significant losses.
According to Coinglass, the liquidation volume over the past 24 hours reached $955 million, with $767 million in long positions.
Julio Moreno, head of research at CryptoQuant, stated the necessity of the current cryptocurrency market crash.
This price sell-off is needed to reset traders unrealized profits to zero, typically a bottom signal in bull markets.
After today’s sell off, traders’ unrealized profits (purple area) are at the lowest since early February (10%).
Moreover, prices are nearer to the trader’s… pic.twitter.com/qlcOHdGeFv
— Julio Moreno (@jjcmoreno) April 14, 2024
“This sell-off is necessary to reset traders’ unrealized profits to zero — typically a bottom signal in bull markets. After today’s sell-off, traders’ unrealized profits (purple area) are at the lowest since February (10%),” he wrote.
MicroStrategy founder Michael Saylor briefly emphasized that “chaos is good for Bitcoin.”
Chaos is good for #Bitcoin.
— Michael Saylor⚡️ (@saylor) April 13, 2024
Peter Schiff, president of Euro Pacific Capital and a critic of the leading cryptocurrency, also noted the asset’s decline.
Bitcoin just flash crashed to just above $61K. That’s just 26 ounces of gold. At its peak 2.5 years ago one #Bitcoin was worth 37 ounces of #gold. That’s a decline of 30%. Digital Fool’s Gold is clearly in a bear market when priced in real gold.
— Peter Schiff (@PeterSchiff) April 13, 2024
“Bitcoin just crashed to just above $61,000. That’s only 26 ounces of gold. At its peak 2.5 years ago, one Bitcoin was worth 37 ounces of gold. That’s a decline of 30%. Digital Fool’s Gold is clearly in a bear market when priced in real gold,” he wrote.
On the evening of April 12, the price of the leading cryptocurrency dropped to $65,000, but by the next morning, it had recovered to levels above $67,000.
Earlier, former BitMEX CEO Arthur Hayes suggested that Bitcoin could fall before and after the halving, while describing the event as a bullish catalyst for the market in the medium term.
According to Ripple CEO Brad Garlinghouse, the total capitalization of digital assets will double in 2024, exceeding $5 trillion. His optimism is linked to spot Bitcoin ETFs and the halving.
Previously, Morgan Creek Capital CEO Mark Yusko predicted that the leading cryptocurrency would soar to $150,000 by the end of the year. He is confident that Bitcoin’s growth post-halving will be “parabolic.”
Investor and billionaire Tim Draper made an even more bullish forecast for the price of digital gold — $250,000 by the end of the year.