What happens if Bitcoin falls by 20%?
Bitcoin is still the most important cryptocurrency on the market, but what if it falls 20% in value amid the current volatility? At its current price of $96,808.32, that would mean a drop to around $77,446.66.
Such a dramatic drop would trigger a flood of liquidations of highly leveraged positions, which would further deepen the market crisis. BTC declines almost always drag down other cryptocurrencies – and yet Dogecoin is already down more than 10%. In a situation where the market seems to be “pumped up”, the consequences could be more severe than usual.