Bitcoin Loses $500 in Just Three Minutes as Volatility Returns in BTC Markets

Bitcoin lost $500 of value in just three minutes and touched $12,700 on few crypto exchanges. Sudden loss of price value is due to the entrance of sellers in the markets.

A few hours back, buyers sent Bitcoin to $12,700 after it lost nearly $500 in a span of three minutes. It happened after the world’s leading cryptocurrency set a new yearly high position.

However, it has recovered to some extent and is currently exchanging hands at $12,993. After losing value in a sudden move, buyers came for help and struggled to pump price value above $13,000. Due to the weekend, it may be due to a lack of active participation of crypto traders.

According to a report by blockchain on-chain analytics firm Skew, BTC positions worth millions of dollars have liquidated after a sudden crash. For instance, crypto derivatives exchange BitMEX witnessed a liquidation of $15 million amid a flash crash.

Factors behind Sudden Crash

There are major three factors that are behind the sudden crash of BTC value. Before price falling, the top digital asset jumped from $13,127 to $13,350, but after its entry in the $13,300-$13,500 region, its movement towards downward started. The strong resistance level prevents price value to go up with the help of sellers. As miners see a profit when its price goes up, they agree to transfer BTC over exchanges. According to data published by ByteTree, miners sold a BTC in significant amounts over last week. Some crypto experts predicted it would see a pullback after reaching out to $13,500.

As crypto markets have shown an outstanding rally over the week, it is time to take a rest, which is not a bad thing. The funding rate of the top digital asset has also become average and is now standing at a 0.01% level. The Fear & Greed Index has also presented “extreme greed” in the BTC markets.

It is a legacy of crypto markets that volatility is more seen on weekends. Today, great volatility is witnessed after Bitcoin lost $500 in just three minutes.

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