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Why Bitcoin’s Price Crashed to $22.2K in Minutes: Analyst

source-logo  cryptopotato.com 03 March 2023 08:33, UTC

While Bitcoin’s decline comes a day after Silvergate Bank revealed operational challenges, some seem to think that the nature of the crash was far too quick for it to be a direct result of the turmoil.

Indeed, the 5-minute chart reveals that the 5% crash happened in no more than 20 minutes.

Source: Binance, 5m

  • The move caused a considerable tick in the liquidations, which are currently standing at around $243 million across the board for the past 24 hours.
  • And while the crash comes shortly after Silvergate Bank revealed a lot of operational challenges and many crypto companies abandoned ship, the nature of it seems off.
  • Intra-day trader and creator of delta-based trading systems 52Skew took it to Twitter to clarify the reason for this particular crash.

BTC – well, no sharp squeeze up but sharp margin cascade here.

What led to this move is a large binance spot sale directly into an area of stacked up longs.

Margin call.