Bitcoin, the world’s leading cryptocurrency, took a sharp nosedive this week, shedding $700 off its value in a mere minute. This unexpected slump occurred as investors held their breath awaiting the Federal Reserve’s decision on interest rates, triggering unease since Bitcoin was flirting with the $29,000 threshold once again.
The abrupt shock drop wasn’t triggered by any breaking news, leaving many speculating on the cause. This rapid descent resulted in a considerable spike in liquidations, adding to the market volatility. Within 60 seconds, a total of $30 million in Bitcoin positions were liquidated, with a comprehensive liquidation sum alongside altcoins amassing to $85 million.
As at now, the reason behind the precipitous drop remains uncertain. It’s unclear whether it resulted from open positions being liquidated or if an individual had received privileged information that sparked the selloff. As soon as more details come to light, they’ll be communicated promptly.