Bitcoin Bounces Back: Traders Pile In After 50% Crash From All-Time High
Bitcoin whipsawed during a volatile trading session amid a huge selloff that caused BTC to drop more than 50% from its October peak.
Quick overview
- Bitcoin experienced significant volatility, dropping over 50% from its October peak before recovering slightly.
- The cryptocurrency fell to a low of $60,033 before rebounding to $66,721 during the trading session.
- Other cryptocurrencies, like Solana, also faced steep declines but managed to recover their losses shortly after.
- Market confidence has been shaken due to recent liquidations and increased volatility, with Bitcoin's implied volatility index rising sharply.
Live BTC/USD Chart
Bitcoin whipsawed during a volatile trading session amid a huge selloff that saw it drop more than 50% from its October peak.
The original cryptocurrency fell as much as 4.8 percent to a new low of $60,033 on Friday morning. After that, it recovered to $66,721, up about 5.8% for the session.
Other tokens experienced a steep decline before rising again. Solana experienced a 14 percent decline at one point, but a few hours later, those losses were completely erased.
Cryptocurrencies have been in a precarious position ever since a harsh round of liquidations in October undermined market confidence.
The selling gained momentum this week because of the winding down of leveraged bets and general market volatility. Thursday saw the biggest one-day decline in Bitcoin since November, falling more than 13%. Sam Bankman-Fried’s FTX failed in 2022.
“Bitcoin volatility has doubled from last week,” said Pratik Kala, head of research at Apollo Crypto, a digital-assets hedge fund. The Bitcoin Volmex Implied Volatility Index, which is based on real-time cryptocurrency options prices and is intended to reflect the market’s expected 30-day volatility of Bitcoin, jumped to over 97 percent on Thursday from 57 percent. “
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