Bitcoin (BTC) experienced a sharp decline of over $2,000 within one hour on May 10, disrupting the market’s tranquility with a sudden surge in volatility.
According to data sourced from TradingView, traders employing leveraged long positions found themselves on the wrong side of the market as Bitcoin’s price swiftly plummeted from a peak of $63,494 on May 10 to an intra-day low of $60,308.
The losses are still adding up. In the 24 hours before, the main cryptocurrency had lost more than 2.5% of its value.
Reacting to this phenomenon, Michaël van de Poppe, the founder of MN Capital, remarked, “The final accumulation is happening,” noting that such occurrences have become commonplace within short time frames for BTC since the halving event.
Community’s Reaction To Bitcoin’s Volatility
Van de Poppe explained that this trend includes Bitcoin’s low volatility and unpredictable price changes since Feb. 29. He also said that BTC’s recent crash brought it back to a key support level.
Daan Crypto Trades, a well-known trader, said that Bitcoin’s quick drop to $60,000 on May 9 was a quick move to “punish those longs that aped in above $63K.”
But investors bet that BTC would rise above $64,000 and lost significant funds on Friday, May 10. The drop caused $127 million in long bets to be closed in just 24 hours, wiping out a total of $175.17 million, according to data from Coinglass.
Since the latest drop, long positions worth $9 million in BTC have been closed out, with $6.36 million being longs.
