The cryptocurrency market looks to have recovered its losses, but things have taken a new turn in the last 24 hours, with the price of Bitcoin falling below $38,000.
Since climbing above the psychological price level of $40,000, Bitcoin has reversed course, plunging below $38,000 once more, wiping out its intraday gain. Bitcoin (BTC) fell from $40,799 to $37,701 on Bitstamp on April 26, a six-week low according to TradingView.
The flagship cryptocurrency’s price has subsequently begun to recover, rising 3.75 percent from its intraday low to $39,118 as of this writing.
The vast majority of other major cryptocurrencies have likewise underperformed. In the last 24 hours, Ethereum, Solana (SOL), Polkadot (DOT), Terra (LUNA), Cardano (ADA), Binance Coin (BNB), and Avalanche (AVAX) have all been in the red.
The price of Bitcoin has been moving in lockstep with the global equity market, particularly tech companies, which are currently in a sea of red. On Tuesday, the Nasdaq 100 index fell 3.87 percent as investors worried about an economic slowdown that may damage profitability.
Fears of disappointing earnings from key technology companies fueled the Nasdaq’s recent drop. Alphabet, the parent company of Google, fell 4% after missing quarterly revenue expectations. Meta (previously Facebook) and PayPal will report their earnings at 20:00 UTC today.
Speculators betting on the price of Bitcoin and other cryptocurrencies dropping in recent hours caused a wave of huge short order liquidations, with roughly 70% of shorts liquidating on exchanges, according to Coinglass figures.
In less than 24 hours, 38,509 traders were liquidated their short positions across the cryptosphere, bringing the total amount liquidated to about $358 million.
Bitcoin’s price trajectory is uncertain, and there are no clear clues as to what will happen in traditional markets in the future months, which will have a huge impact on Bitcoin’s direction, so keep a watchful eye and manage your portfolio prudently.