Reasons for Bitcoin's plunge
On February 26, Bitcoin fell to $83,500, down 12% over the past seven days. The sharp drop caused heavy losses for traders holding long positions. Data from CoinGlass shows that the drop led to the liquidation of more than $1 billion in leveraged positions, increasing selling pressure.
Following the liquidation, a recent report from CoinGape highlighted the top 4 cryptocurrencies to buy during the decline: XRP, Solana, Ethereum, and SUI. Despite the recent decline, these altcoins are still supported by institutional capital inflows and bullish fundamentals.
Similarly, the decline in Bitcoin prices is consistent with broader market concerns, including concerns about a potential global recession. Amid increased uncertainty, investors are turning to safer assets such as U.S. Treasuries and gold.
Another analyst also pointed out that the Bybit hack was a key factor in the panic in the cryptocurrency market, increasing selling pressure.
