The digital asset market saw a significant dip Wednesday morning, with Bitcoin (BTC) taking the brunt of it. Dropping below $30,000, the largest cryptocurrency by market value went as low as $29,000 in European morning hours, according to CoinDesk data. The spill lasted for about 15 minutes, going down $1,000 in the process. There were no discernible fundamental reasons behind the Bitcoin sell-off, though market analysts and traders believe it might have been a long squeeze, wherein investors settle their mounting short positions thus leading to a price crash.

According to multiple reports, over $25 million worth of Bitcoin futures contracts were liquidated, with longs taking up 98% of the positions liquidated. This type of sell-off spilled out over to the broader crypto market, with Ethereum (ETH) also taking a plunge by 3%, as seen in the past hour. This is the third time in a week that Bitcoin has dipped below the $30,000 level, and analysts are expecting more of such surprise corrections in the near future.

Though many seasoned investors and traders were caught off guard by this sudden decline, the crypto market expected something like this very soon. Talk of a crypto bubble popping had been going around, owing to Bitcoin and other cryptocurrencies having experienced a historic bull market run this past year. With investors expecting more regualtion and market interventions in the future, it wasn’t a surprise that Bitcoin fell into the $30,000 range.

At press time, Bitcoin is trading around the $30,800 range and is expected to stabilize around by the end of the day. Though things have settled now, Bitcoin and other digital assets remain vulnerable to shocks, as they are still seen as non-traditional assets that are highly volatile in nature. What this sudden decline has shown is investors, who were once high on Bitcoin and other cryptocurrency, need to be prepared for more shocks in the near future.



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