Bitcoin price drops as $150m in the crypto is liquidated on BitMEX
12:42, 27 February 2020
The crypto markets lost most of their February gains today, as Bitcoin dropped to $8,700 following a huge liquidation on the crypto exchange BitMEX.
The data provided by Skew, a crypto analytics service, shows that more than $150m (£116m, €137m) of Bitcoin was sold on BitMEX in the largest deal since the beginning of the year.
The expiration of millions of long and short positions caused the markets to drop. Initially, Bitcoin fell almost 6 per cent to $8,580. However, at press time the world’s major cryptocurrency has won back part of its price and is trading around $8,700.
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Earlier in February, experts anticipated Bitcoin to stay above the $10,000 mark, with some claiming that crypto assets could be a safe haven for investors amid the coronavirus fears.
Currently, the readers are preparing for the further drop to $8,000, which might affect the upcoming Bitcoin halving event expected in mid-May.
Still, some crypto enthusiasts are predicting a recovery. Tom Lee, a long-time crypto supporter and a co-founder of Fundstrat Global Advisors, believes Bitcoin will get as high as $27,000 by the summer of 2020.