Bitcoin’s price was able to quickly bounce back after it tumbled by around 17 percent on Saturday. The crypto’s sharp decline is part of the broader downward trend in the financial markets amidst mounting concerns about the omicron coronavirus variant.
Bitcoin, which was trading at $57,000 on Friday morning, plunged by to around $43,000 on Saturday morning, CNBC reported. BTC declined by more than 17 percent in just 24 hours as part of the broader selloff in the financial markets over concerns about the new coronavirus variant.
However, the crypto was able to recover fast from its steep decline. By Sunday morning, BTC was trading at $48,776 around 7:45 p.m. ET.
Bitcoin managed to stabilize at the price level and even managed to inch up higher. At the time of writing, BTC traded at $49,030.50 based on Coindesk data.
BTC’s decline on Saturday is the biggest price drop in six months. In May, a massive sell-off resulted to an almost 27 percent decline in the crypto’s price over a 24-hour period when Bitcoin slumped from over $43,000 to under $32,000, according to Coindesk.
Trading volume rose to around $20 billion on Saturday based on data compiled by Coindesk from 11 major centralized exchanges. However, trading volume sharply dropped by Sunday as investors waited for the opening of traditional markets.
Unlike May’s plunge, investors quickly returned to the scene and helped Bitcoin regain lost ground. For instance, El Salvador said that they bought the dip following the price drop.
“It looks like somebody likely got hit with a margin call yesterday and thus was ‘forced to sell,” Miller Tabak equity strategist Matt Maley explained. “The Bitcoin market tends to be much more ‘thin’ on the weekends so that probably exacerbated the decline. Once the dust had settled, the buyer came back in and it stabilized.”
Oanda senior market analyst Ed Moya pointed out that despite the recent correction, Bitcoin’s long-term bullish outlook remains. “Bitcoin is in ‘no man’s land' right now and that does not seem to be changing anytime soon,” Moya said. “The long-term bullish case remains intact but prices seem poised to consolidate between $52,000 and $60,000.”