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The price of Bitcoin fell below $93,000 due to the liquidation of long positions and profit-taking by long-term Bitcoin holders. Margin traders suffered significant losses, with total liquidations of $337.6 million in the last 24 hours. Analysts identified long-term Bitcoin holders as another culprit in the current drop. It is expected that the price of Bitcoin may rebound at the levels of $94,000 or $86,000-$88,000 in the next 7-10 days.
The drop in the price of Bitcoin may impact other cryptocurrencies due to several factors:
1. *Drag effect*: The drop of Bitcoin can drag other cryptocurrencies down, as many investors and traders tend to sell their assets when the Bitcoin market becomes volatile.
2. *Correlation*: Many cryptocurrencies have a high correlation with Bitcoin, which means that when the price of Bitcoin rises or falls, the price of other cryptocurrencies can also rise or fall.
3. *Loss of confidence*: The drop in the price of Bitcoin may cause investors to lose confidence in the cryptocurrency market in general, which can lead to a massive sell-off of other cryptocurrencies.
4. *Chain liquidations*: The drop in the price of Bitcoin may trigger chain liquidations in other cryptocurrency markets, which can exacerbate volatility and price declines.
Source: Cointelegraph and opinion of Meta AI
Tip: Hold your cryptocurrencies for the long term and stay updated on new news in the crypto world.