The cryptocurrency market has been rocked in the past few days, losing billions of dollars in market value. This decline coincided with the liquidation of positions worth $1.7 billion, raising questions about the reasons for this sudden turmoil. Is it due to the impact of technological developments such as the launch of the quantum computing chip, or is it the result of major market movements by some major players?
Bitcoin fell from over $100,000 to $94,100 (before bouncing back to $98,000 now), while Ethereum fell 8% to below $3,800.
The liquidation of positions was massive, amounting to $1.5 billion in long positions and $168 million in short positions, resulting in a 7.5% drop in the cryptocurrency market cap.
As we mentioned, Bitcoin price has partially recovered to $97,800 but is still down 2% in 24 hours.
As for alternative currencies, most of them recorded losses exceeding 10%.
Major cryptocurrencies were not spared, with Ripple, Dogecoin (DOGE), and Cardano (ADA) suffering the biggest losses, falling by 11%, 10%, and 13%, respectively.
No definitive reasons have been identified for the decline, but some analysts have pointed to the impact of Google’s release of its Willow quantum computing chip and large bitcoin transfers by Bhutan.
Arkham Intelligence data revealed that Botan transferred 406 bitcoins to Singaporean firm QCP Capital, along with a $19 million transfer to an anonymous wallet.
Despite these activities, Bhutan holds 11,688 bitcoins worth an estimated $1.1 billion, making it one of the largest government-owned bitcoins in the world.
It is worth noting that Bhutan relies on hydroelectric power to mine Bitcoin.
