Michaela
Co-founder of the crypto exchange, Tyler Winklevoss, recently commented on Bitcoin’s stability, highlighting its role as a hedge. However, his observation comes amid a brutal crypto market crash, with liquidations exceeding $1.36 billion in the past 24 hours, including Bitcoin (BTC).
“For the first time in history, [Bitcoin] is not moving in lockstep with the stock market. It’s now behaving like a hedge to geopolitical uncertainty. When the stock market plunged during Covid, so did bitcoin. And this was always [the] case over the last 10+ yrs,” Winklevoss wrote in a post on X. “But not this time. Despite the market nose-diving in response to tariffs, bitcoin is holding steady at +80k. It’s starting to look less and less like a risk-on asset. We are in new territory,” the American entrepreneur added.
Shortly after Winklevoss shared his post, several members of the crypto community quickly pointed out that his comments had not aged well, noting that Bitcoin’s price had dropped.
Cryptocurrency markets experienced a sharp downturn on what has been called “Black Monday,” with liquidations surpassing $1.36 billion in the last 24 hours. This crypto market crash mirrors the global stock market slump triggered by President Trump’s ‘Liberation Day’ tariffs (link to recent story about Trump’s tariff).
Bitcoin, which dropped to nearly $75,000, led the crypto market crash, sparking a wave of forced liquidations across the board. The entire cryptocurrency market has fallen by nearly 13% in the past 24 hours.
According to data from CoinGlass, long-positioned futures traders were hit hardest by the market volatility, with over $1.2 billion in long bets wiped out. Bitcoin alone accounted for more than $392 million in losses. Between 5 p.m. and 8 p.m. on Sunday, April 6, the digital asset market contracted by $50 billion, dropping from $2.53 trillion to $2.48 trillion. Bitcoin hit a low of $77,098 at 7:24 p.m. ET before rebounding slightly to $77,654.
Additionally, Ether (ETH) traders faced losses of nearly $328 million, while altcoins like Solana (SOL) and XRP saw $400 million in liquidations. ETH dropped 20% to $1,449, with SOL, XRP, and Dogecoin (DOGE) also losing up to 20%. BNB fell by nearly 10%, while mid and low-cap tokens saw similar drops.
About 86% of futures traders had anticipated a price rally, but the downturn led to mass liquidations as traders failed to meet margin calls. This level of forced selling often signals market stress, which could lead to a rebound after excess leverage is cleared.
Read More
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- Bitcoin Caught in Crossfire: Retail Weakens, Institutions Buy the Dip
- Gemini by Winklevoss Twins Settles with CFTC for $5M
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
