Silvergate: How Bitcoin Investors Can Secure Their Investments

• On March 3, the Bitcoin price experienced a drastic downward movement.
• This was the third liquidation cascade within the last 12 months after the Terra crash and FTX bankruptcy.
• Negative funding rates give the buyer camp an incentive for a new Bitcoin entry, but analysts see both positives and negatives that can affect price.

Bitcoin Price Drop

On March 3, the Bitcoin price experienced a drastic downward movement, 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.

Liquidation Cascade

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

How To Proceed Now?

Forecasts are extremely difficult. Some talk of a clear oversell, which should level off again. On the other hand: Negative funding rates currently give buyers an incentive for a new entry into Bitcoin while many investors also expect temporary price recovery due to positive signs on US stock market shortly after this incident.
Overall, however, situation for Bitcoin course will remain uncertain in coming weeks and months as analysts see both positives and negatives that can affect price Investors should therefore follow developments closely and adjust their investment decisions accordingly..

Fundamentals Remain Stable

Despite recent price correction and negative headlines, fundamentals of Bitcoin network remain stable Network activity shows hash rate measuring total computing power on proof-of-work network continues rising Hash rate has almost doubled since November 2021 despite significant fall in price same period Number active addresses on network also increased during same period

Conclusion

All things considered, investors should follow developments closely and adjust their investment decisions accordingly when it comes to investing with whole Bitcoins or buying shares instead While there may be some positive signs regarding temporary recovery of prices due to US stock market indications forecasts are still difficult as both positives and negatives can affect prices