TL; DR
Full story
You know that lady from YouTube who swims with tiger sharks and she strokes almost as if they are dogs?
If you watch enough of her videos, you’ll almost forget that these sharks are wild animals that can rip your face off…
Over the weekend, the crypto community got a similar reminder of Bitcoin’s wild/face ripping tendencies after it lost $34 billion in value from its market cap in less than 20 minutes.
For context, that is more than the whole market capitalization of Solana *poof* away!
So how did it happen?
The short answer: a large group of investors got a little over-excited about Bitcoin and used borrowed money to bet that the price would go even higher…
When that didn’t happen, they were forced to sell their positions so they could pay back their lenders.
This sudden and combined forced sell-off led to a sharp price drop of 4%.
Okay, now you know.
Stay safe out there folks!