Bitcoin Price Crash: What Investors Should Know Now

• The Bitcoin price experienced a drastic downward movement on March 3, causing it to drop to around $22,000.
• Analysts see both positives and negatives that can affect price, so investors should follow developments closely and adjust their investment decisions accordingly.
• Despite the recent price correction, the fundamentals of the Bitcoin network remain stable with an increasing hash rate and number of active addresses.

Recent Price Drop in Bitcoin

The Bitcoin price experienced a drastic downward movement in the early morning hours of March 3, causing it to drop to around $22,000 in a very short time. This confirmed one forecast in particular: namely the forecast that the Bitcoin course was about to make a directional decision. The cryptocurrency has trended about 4 percent weaker over the past 24 hours of trading, marking the biggest bitcoin sell-off so far this year. An event that many investors could not count on.

Liquidation Cascade

Over $62 million in long BTC positions were liquidated in a matter of hours. This was the third liquidation cascade within the last 12 months: after the Terra crash and the FTX bankruptcy in 2022.

Strategy for Investors

While this should hardly change anything in the strategy for professional investors, it is somewhat different for new investors: For new investors in the crypto market, Bitcoin shares are recommended for entry instead of investing larger amounts of money with whole Bitcoins.

Forecasts Difficult

Forecasts are extremely difficult. Some talk of a clear oversell, which should level off again. On the other hand: Negative funding rates currently give the buyer camp a high incentive for a new entry into Bitcoin. A temporary price recovery is expected by many investors and positive signs on US stock markets shortly after this Bitcoin crash underline this scenario.

Fundamentals Remain Stable

Overall, situation for Bitcoin course will remain uncertain in coming weeks and months but despite recent price correction and negative headlines; fundamentals of bitcoin network remain stable with increasing hash rate and number of active addresses