Reasons for Bitcoin’s fall by more than $ 2,000 in just one day

The rate of the flagship cryptocurrency fell below $ 28,000, losing more than $ 2,000 and 2.1% of its value in a day.

The main reason for the sharp drop BTC $98,497.44 Bitcoin 5.31% Market capitalization $1.95 trillion VOL. 24 hours $2.43 billion analysts called the purchase of First Republic Bank by JPMorgan. At the time of writing, BTC is trading at $ 27,992.

During the same period, the ethereum rate fell to $ 1828, losing 1%. Quotes of the leading altcoins have also dropped: Ripple (XRP) fell to $ 0.46, Cardano (ADA) — to $ 0.38. Solana (SOL) dropped to $ 21.8, and Polygon (MATIC) dropped to $ 0.95.

Amid the collapse of cryptocurrencies, crypto exchanges liquidated positions in bitcoin worth $ 24.37 million and in ETH worth $ 13.49 million. According to Coinglass, almost 72% of them were long. The largest forced closure of positions occurred on OKX in the ETH/USDT pair, amounting to $ 1.5 million.

Despite the price pullback, the first cryptocurrency has grown by almost 70% over the past year after falling by more than 60% at the end of 2022. In April, for the first time in two years, bitcoin demonstrated the longest streak of monthly growth.

More and more investors are considering bitcoin as a means of preserving capital. «The recent crisis in the U.S. banking sector has helped to reignite the use of bitcoin as a decentralized, reliable, and scarce digital asset,» said Jeff Kendrick, Head of Cryptocurrency Trading and EM FX West at Standard Chartered.