Silvergate: Bitcoin Investors – How to Act Now in a Volatile Market

• Bitcoin experienced a drastic downward movement on March 3, causing it to drop to around $22,000.
• Over $62 million in long BTC positions were liquidated in a matter of hours.
• Despite the recent price correction and negative headlines, the fundamentals of the Bitcoin network remain stable.

Overview of Latest Developments

The Bitcoin price experienced a drastic downward movement in the early morning hours of March 3, 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. An event that many investors could not count on. Over $62 million in long BTC positions were liquidated in a matter of hours. 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 entering into Bitcoin investments. A temporary price recovery is expected by many investors and positive signs on US stock market shortly after this Bitcoin crash underline this scenario. Investors should therefore follow developments closely and adjust their investment decisions accordingly.

Fundamentals Remain Stable

Despite the recent price correction and negative headlines, fundamentals of Bitcoin network remain stable; Network activity shows that hash rate (total computing power on proof-of-work network) continues to rise – doubling since November 2021; Active addresses on network have also increased significantly despite falling prices over same period of time.

Investment Advice for New Investors

For new investors joining crypto market, it is recommended that they invest with bitcoins instead of investing large amounts with whole bitcoins; Investing larger amounts with whole bitcoins should be reserved for professional investors who understand risks associated with such investments better than newbies do; Investment strategies should be tailored according to current developments taking place within crypto markets as well as positive/negative news related to them; Investors should follow developments closely and adapt their strategies accordingly for best results from their investments into crypto space .


Overall, situation for bitcoin course remains uncertain in coming weeks & months; Analysts see both positives & negatives affecting price – hence why it’s essential that investors keep track of all information related to crypto markets & tailor their strategies accordingly if they want achieve success from investments made therein; Despite recent events fundamentals underlying bitcoin network remain strong & stable – showing potential growth opportunities ahead regardless what happens next with its price movements or news stories surrounding it