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Title: Bitcoin Volatility Explained: A $424 Million Shift in Hours
Bitcoin’s value has experienced significant fluctuations recently, with a massive shift of over $424 million in just a few hours. This dramatic price movement is unprecedented and raises concerns about the future trajectory of cryptocurrency trading.
According to recent reports, Bitcoin’s value surged to break above $100,000 for the first time ever, reaching an all-time high of $100,235 on Friday. This remarkable rise can be attributed to mixed U.S. jobs numbers, which revealed a decline in unemployment rates but slower job creation.
This surge is not entirely surprising, considering the impact of the Federal Reserve’s decision to lower borrowing costs last year. Bitcoin and other riskier assets typically perform well in such an environment. However, with demand growth slowing since early December, it appears that this rally may be losing steam.
Experts are sounding alarm bells about the possibility of prolonged choppy or corrective price action without renewed leverage driving the next rally. Glassnode’s data suggests that speculative appetite is weakening, leading to a decline in demand for leveraged longs and subsequently, the seven-day average funding rate has decreased by 85% since its December peak.
As a result, it seems unlikely that Bitcoin will maintain this upward momentum without additional impetus from investors.
Source: https://u.today/424-million-btc-in-hours-whats-happening
