The price of Bitcoin (BTC) briefly fell to $54,000 on May 10, amid low social activity and the liquidation of leveraged long positions. This sudden drop came after a period of relative stability in the price of the flagship cryptocurrency.
Bitcoin's falling price
Bitcoin fell by over $2,000 in just one hour on May 10, from a high of $63,494 to a low of $60,308. This volatility caught many leveraged traders unawares, resulting in the liquidation of long positions worth a total of $175.17 million over 24 hours. The sudden drop also rekindled debates about the stability and predictability of cryptocurrencies.
The impact of liquidations on the market
Massive liquidations amplified the fall in Bitcoin's price. A total of $9 million of leveraged BTC positions were liquidated in the space of an hour, including $6.36 million of long positions. This wave of forced sales helped push the Bitcoin price even lower. The increased instability led to panic among investors, further accentuating the fall in price.
Prospects for Bitcoin
Despite this sharp fall, analysts remain relatively optimistic about Bitcoin's short-term future. Some believe that BTC could fall further to $52,000-55,000, which would be the final stage of the correction. However, once this support zone has been reached, Bitcoin should be able to start rising again and retest its all-time highs.
