Hello and welcome back to another edition of Overbit News.
This week, we look at one of the biggest flash crashes in Bitcoin history, which resulted in the liquidation of $10 billion in positions. Bitcoin dropped nearly $10,000 in price on Sunday morning, reaching a low of $50,900 on the Binance market, the lowest level since early March.
Although Bitcoin has recovered somewhat since the crash, it is still down more than 9% on the day. Although the market did rebound to some extent, most longs had already succumbed to the crash. According to Bybt, the last 24 hours saw a new high in liquidations. And over a million jobs being eliminated from the books.
A BTC trade on Binance lost $68.73 million in the single most prominent position. Binance was the exchange with the most liquidations, accounting for more than 49 per cent of all losing positions, or $4.94 billion. Huobi came in second place with 17% of the positions or $1.72 billion in liquidations. While Bitcoin accounted for most liquidations on Sunday, it appears that altcoins were not spared as well.
To close out today's edition of Overbit News, we once again find ourselves with Dogecoin as the headline of the day.
On Monday, 19 April 2021, Dogecoin briefly overtook Ripple as the fourth-largest cryptocurrency. The coin made headlines when it made another move up to .43 cents, extending an already insane runup. Since then, Dogecoin has fallen back down to the .38 cent region, though it appears to be stabilizing at this level for now.
All eyes are certainly on Dogecoin for now, and with good reason - some of the internet community is attempting to brand 20 April as 'DogeDay' as they rally behind their investment all over social media GameStop style. "Many dogecoiners are predicting the coin to hit 69 cents on 4/20, you know, because the whole currency is a giant meme," as Gizmodo Australia put it. According to the betting website us-bookies.com, the odds are set at 17% for dogecoin rallying to $1 by the year-end, versus 2.9% at the start of the month.
All in all, it's clear there's a lot of heightened interest, speculation and emotion in this ongoing cryptocurrency runup, perhaps best exemplified by the current Dogecoin mania. Frankly, it’s impossible to say where this ride ends for Dogecoin as very few even predicted that it could reach as high as its current price.
That being said, new highs and price discovery should always be approached with a good sense of risk management and awareness as things can and do change frequently and sometimes drastically.
Here at Overbit.com, we'll always do our best to keep you informed in these turbulent waters. As always, thanks for reading Overbit News.