Will More Liquidations Follow?
The global markets have been having a harsh week due to the spread of the coronavirus (COVID-19) across the world. Nearly every market was affected negatively, including oil, indices, and nearly every stock.
Not even assets that are considered safe havens were safe. Gold has declined slightly while Bitcoin has taken a harsher hit. Bitcoin is currently trading at $7,779 the lowest we've seen it since early January 2020.
While Bitcoin has faced a sharp decline of 9.68% today, most altcoins fared even worse. Tezos (XTZ) has lost 14% in the past 24 hours and is now trading at $2.38. Litecoin (LTC) has experienced a similar decline by 14% and is trading at $48.65.
It seems that more dips might be imminent, seeing that some of PlusToken's Bitcoin is heading to liquidation.
BTC Sent to OKex
Earlier today 2000 BTC, the equivalent of $15 million has been sent to OKEx, presumably for liquidation.
Should we see more large liquidations and transfers from wallets
to exchanges, we could see even lower lows.
Essentially this could be a good entry point for those looking to buy Bitcoin, although it is very hard to locate the bottom. The cryptocurrency markets seem to be influenced by current global market trends and while it will likely recover, the question is: When?
Written by Jonathan Ganor
Writer & cryptocurrency aficionado