The crypto market just witnessed a loss worth $310 million in liquidation. Despite that amount going down the drain, the community is riding the bull for the members to know that Bitcoin is not going anywhere. It has affected BTC for sure; however, the digital asset has seen worse than that.
For instance, BTC was seen changing hands at just above the $16k mark in November 2022. To be more specific, BTC was trading at $16,252.50 on November 20, 2022. The current price is a huge jump with the potential to eventually cross $30k before the year concludes.
The Impact Of Liquidation On Bitcoin
The crypto market, in the macro sense, has lost 5.6{ee212069bfc2680724ddd6b0d505d051cd6a6be760d8da0a6a57844f2abae5c8} in just one hour. It further accumulates to a loss of 1.3{ee212069bfc2680724ddd6b0d505d051cd6a6be760d8da0a6a57844f2abae5c8} in a single day. The fact that BTC was a victim of this trend cannot simply be kept hidden from the trading community. Bitcoin was teased to cross $30k pretty soon. That timeline has been pulled down for a while since the time BTC registered, sinking as low as $27,264.
The drop came when it had almost touched the mark of $28,275 and was on the way to fulfilling every trader’s dream.
It would also be wrong to say that Bitcoin is the only biggest cryptocurrency to suffer amid the liquidation loss. Ethereum is touted as the next big thing after Bitcoin. ETH is seen as a token that will soon overtake BTC by leveraging its wider case utilities. One day, sure, but the present situation shows ETH coming down to $1,789 against the high of $1,984. The token has now bounced back to $1,914.65 at the time of drafting this article. Estimates are that it will soon cross the $2k mark to move toward the top spot.
A definite timeline would have come in handy for traders. As the market moves and volatility plays its role, one can only hope that not just ETH but BTC also delivers the expected returns to their holders.
The Current State Of Bitcoin
Bitcoin is dancing around $29,467.10 at the time of drafting this article. It has increased by 42.98{ee212069bfc2680724ddd6b0d505d051cd6a6be760d8da0a6a57844f2abae5c8} in the past 6 months. Enough to say that Bitcoin knows how to bounce back. The largest cryptocurrency in the world has also seen an increase of 8.04{ee212069bfc2680724ddd6b0d505d051cd6a6be760d8da0a6a57844f2abae5c8} since the last month. As for the five-day comparison, there has been a rise of 6.84{ee212069bfc2680724ddd6b0d505d051cd6a6be760d8da0a6a57844f2abae5c8}.
All of it appears in green color except the numbers for the past 24 hours. There remains a hope that BTC will go as high as $59,000 by the time 2023 ends. BTC price prediction estimates that the mark of $100k is also a possibility in the next 3-4 years. That is the maximum limit, and BTC holders must prepare for a blow as the minimum level is estimated to be somewhere around $66,000 in 2026.
A rise in the price of Bitcoin suits the trading community. It has been tagged as a safe-haven asset, often looked at as an alternative to buying gold.
The Future Of Bitcoin
Silicon Valley Bank has collapsed, leaving a lot of customers stranded in the middle of the crisis. Experts are rallying with means to save SVB, while digital enthusiasts have started pitching a different solution altogether. It works well for Bitcoin because a decentralized financial structure is in the picture now.
The traditional banking system cannot be erased entirely. The color of the picture just reflects if another financial ecosystem can parallelly work as a backup for those who want to rely less on the traditional banking system. Bitcoin comes at the top, and people are more likely to get a share of the digital asset.
Ethereum is there on the list. It will stick around till the time there is not a major dip. If a major fact has to be faced, then it is only right to assume that customers will move to something about which they have heard a lot or know has the capability to circumvent the volatility factor for a better return. Simply put, Bitcoin has a future, no matter the scenario. However, talking about numbers, it is estimated to cross $50,000 by the time 2023 ends. The following year is expected to be brighter.
Conclusion
There has been a loss of $310 million due to liquidation. It has spread across the crypto market but only like water. It has almost been mopped by the rising values of cryptocurrencies. BTC gaining traction is not a unique case. It is rather the case of the largest cryptocurrency leading the digital market from the front.
More positive reactions are likely once the market gets the confidence back. If Bitcoin gets that confidence back, then one can only feel safe that other crypto assets will soon pick up that tone for personal benefits.