On Wednesday morning, the price of Bitcoin plummeted to $58,100, losing thousands of dollars in value and crashing in one of the sharpest drops since October 15, according to Reuters.
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Despite soaring to an all-time high of $67,016 on Tuesday, the globe’s number one crypto dropped by 3.7% on Wednesday.
The overall global cryptocurrency market slipped below $2.5 trillion, down this week by over $200 billion.
Other cryptocurrencies like Ethereum, Binance Coin, Cardano, Solana, and Ripple also saw their prices dip by up to 15%.
The crash in Bitcoin’s price was likely sparked by long-term Bitcoin investors rallying profits after seeing Bitcoin's all-time high price and liquidating their positions. Panic selling is common among investors after a sudden price dip. Experts expect more selling in the coming time period, indicated by Bitcoin going below its 20-day moving average.
On Wednesday, the total liquidations of long Bitcoin positions were the highest number since September 20, reaching $700 million, according to Bybt.com.
“The price slump is being fueled by sellers, who appear to be acting simultaneously in taking profits on their investment,” Petr Kozyakov, co-founder of the global payments network Mercuryo told Bloomberg.
However, October is still likely to finish out as one of Bitcoin’s strongest months this year, with Reuters already reporting that October saw nearly 35% growth in Bitcoin's value.