Bitcoin (BTC) price has dropped below $48,000 after a period of extreme bullish sentiment. In fact, the entire cryptocurrency market capitalization has dropped by 4 percent in the past 24 hours.
<h2><strong>Bitcoin (BTC) Price Drops Below $48,000</strong></h2>
Earlier this week, the price of the world’s largest cryptocurrency Bitcoin (<a href="https://www.coingecko.com/en/coins/bitcoin" target="_blank" rel="nofollow noopener">BTC</a>) broke above $50,000 for the first time in three months. Just two days after the bullish wave, the cryptocurrency is now back to trading below $48,000.

The digital asset initially bounced off, adding $1000 in a matter of hours. However, this proved to be only short-lived, with bears pushing back the cryptocurrency to its current level of below $48,000.

Such tumultuous volatility over the past 24 hours has caused painful losses to leveraged traders. Data from <a href="https://www.bybt.com/LiquidationData" target="_blank" rel="nofollow noopener">Bybyt</a> shows that the liquidations within this time period have gone to over $450 million. In fact, a user trading BTC has lost under a whopping $5 million.

Despite the short-term price loss, the <a href="https://www.cryptoknowmics.com/news/bitcoin-btc-price-touches-50k-fear-greed-index-shows-extreme-greed/">digital asset has gained 82%</a> since hitting a yearly low of $27,700 in January. At the time of writing, the cryptocurrency is trading at $44,468, down 3.5% from the past 24 hours, with a market capitalization of $892 billion.

Commenting on Bitcoin’s sudden price drop, Edul Patel, CEO and co-founder of Mudrex, a global algorithm based crypto trading platform, said:
<blockquote><em>“Bitcoin seems to be facing strong resistance at the current price. Since its drop below $50,000, the bears have been in a dominating position.”</em></blockquote>
<h2><strong>Bitcoin's Hashrate and Supply Holdings Increase</strong></h2>
According to data from crypto analytics platform <a href="https://studio.glassnode.com/metrics?a=BTC&amp;category=Distribution&amp;chartStyle=column&amp;m=supply.SthSum&amp;s=1463531891&amp;u=1621211891&amp;zoom=1825" target="_blank" rel="nofollow noopener">Glassnode</a> and <a href="https://www.blockchain.com/charts/hash-rate" target="_blank" rel="nofollow noopener">Blockchain.com</a>, indicators suggest Bitcoin’s upcoming circulating supply increased despite the recent price drop. With the increased supply, the amount of Bitcoin holdings also increased. Meanwhile, the total supply-held reached an ATH in October 2020, when the cryptocurrency was ranging around the level of $10,000.

While the Chinese crypto market is still recovering from its recent mining ban, various companies have entered the cryptocurrency mining market, resulting in Bitcoin’s increased hashrate.

Bitcoin (BTC) Price Drops Below $48,000 After Heavy Sell-off

Bitcoin (BTC) price has dropped below $48,000 after a period of extreme bullish sentiment. The entire crypto market cap has dropped by 4% in 24 hours.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

Bitcoin (BTC) Price Drops Below $48,000 After Heavy Sell-off

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