The cryptocurrency market witnessed another night of turmoil.
Following a sharp decline on April 13, Bitcoin prices crashed again on April 14, briefly dipping below $60,000—a 7% drop within 24 hours. At 4 AM UTC, traders faced their worst nightmare: liquidation alerts flooded phones as Bitcoin nosedived $5,000 (~¥36,187) in just 15 minutes, wiping out leveraged long positions.
One affected investor told reporters: "Bitcoin has been swinging violently between rallies and crashes. Extreme prices make it dangerous—market sentiment reverses instantly, and wealth vanishes faster than water."
As of writing, Bitcoin oscillates around $62,649, down 9% daily.
Key Data:
- Liquidations: 258,000 traders
Total Losses: $966M (~¥6.99B)
- Long positions: $787M
- Short positions: $179M
Market Context
This week repeated Bitcoin’s volatility:
- April 13: Prices dropped $2,000+ from $67,100 to under $65,000.
Analysts cite geopolitical tensions and risk-off sentiment spilling into crypto. Additionally, speculative hype around the upcoming Bitcoin halving (expected April 20) may have inflated prices prematurely. If expectations fade, profit-taking could trigger steeper declines.
Bitcoin Halving Explained
The halving reduces new Bitcoin supply by slashing block rewards—a quadrennial event critical to its scarcity.
Historical Halvings:
| Year | Block Reward Reduction | Price Drop Pre-Event |
|--------|------------------------|----------------------|
| 2016 | 50% | 38% |
| 2020 | 50% | 20% |
👉 Why the Bitcoin halving matters for investors
Morgan Stanley warns: Post-halving miner profitability may collapse, potentially driving Bitcoin to $42,000 (-36% from current levels).
FAQs
1. What causes Bitcoin’s sudden crashes?
High leverage, speculative trading, and macroeconomic shifts amplify volatility.
2. How does the halving affect Bitcoin’s price?
Reduced supply historically precedes long-term rallies, but short-term sell-offs are common.
3. Should investors worry about liquidations?
Leveraged positions risk auto-closure during wild swings—cash holdings mitigate this.
👉 Secure your crypto holdings effortlessly
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