Bitcoin price drops with over $250 million in total liquidations as judge rules Craig Wright is not Satoshi
|- Bitcoin price retracted to a low of $70,543 on Binance, causing over $250 million in liquidations.
- A UK judge has determined that Craig Wright is not Satoshi Nakamoto and that he did not create BTC.
- Sidelined and late investors could have another buying opportunity before the next leg up ahead of halving.
Bitcoin (BTC) price instigated a crash across the cryptocurrency market on Thursday when it dropped below the $70,000 threshold. The move which saw hundreds of millions in positions wiped out followed reports that Craig Wright is not the pseudonymous creator of Bitcoin, Satoshi Nakamoto.
Also Read: Bitcoin cleared $70,000 and Ethereum, $4,000: What’s next for crypto?
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Bitcoin drops after judge puts out Craig Wright's claims
The identity of Bitcoin’s creator, the pseudonymous Satoshi Nakamoto, has remained a mystery for years. Among the prominent theories include:
- Nick Szabo - Computer scientist and cryptographer
- Hal Finney - Cryptographic pioneer and the first person to receive a Bitcoin transaction from Satoshi Nakamoto
- Dorian Nakamoto - he denied any involvement after a discovery article in 2024
- Craig Wright - Australian computer scientist who claimed he is Satoshi with cryptographic evidence to support his claim.
- A Group of Individuals - There are theories that Satoshi is not a single person.
However, at least one theory might now be put to rest. A high court judge in London cited “overwhelming evidence” after a two-month trial that Craig Wright is not Satoshi Nakamoto.
BREAKING: UK Judge says Craig Wright is NOT Satoshi or the creator of #Bitcoin pic.twitter.com/mCBctAREBi
— Radar (@RadarHits) March 14, 2024
BREAKING: UK Judge says Craig Wright is NOT Satoshi or the creator of #Bitcoin pic.twitter.com/mCBctAREBi
— Radar (@RadarHits) March 14, 2024
The presiding judge, Mr Justice Mellor, said, “…having considered all the evidence and submissions presented to me in this trial, I’ve reached the conclusion that the evidence is overwhelming,” and committed to issuing a “fairly lengthy written judgment” in due course. According to a report on The Guardian, Justice Mellor summarized:
- Wright is not the author of the Bitcoin white paper
- Wright is not the person who adopted or operated under the pseudonym Satoshi Nakamoto in the period 2008 to 2011
- Wright is not the person who created the Bitcoin system
- He is not the author of the initial versions of the Bitcoin software
It all comes after a conglomerate of cryptocurrency companies, dubbed Crypto Open Patent Alliance (Copa), levied charges against Wright. The objective was to prevent him from claiming he had invented Bitcoin as he was already using this to expand his influence over the crypto sector.
Nevertheless, while Wright may not be the elusive inventor, the quest for Satoshi’s true identity continues, with the anonymity adding to the intrigue that surrounds the creation of Bitcoin and its impact on the world of finance and technology.
The news created waves in the BTC market. After advancing toward the $80,000 milestone, Bitcoin price has pulled back to record an intraday low of $70,605 against the Tether (USDT) stablecoin on Binance Exchange. The move resulted in over $250 million in total liquidations, comprising $181 million in long positions against $70 million in short positions across the market.
Total liquidations
In the BTC market, almost $70 million worth of positions were blown out of the water, comprising $56 million longs against $13 million in short positions. In a 24-hour span, BTC open interest rose by $63 million, from $35.8 billion to $36.4 billion between Wednesday and Thursday. This comprises the sum of all open short and long positions for the pioneer cryptocurrency.
Bitcoin price outlook as judge denies claims of Wright being Satoshi
Bitcoin price dipped to an intraday low of $70,543 on Binance and $69,919 on Coinbase against USDT and USD, respectively. Nevertheless, the big-picture outlook remains strongly bullish. The slump could provide a good buying opportunity for investors as the BTC market heats up ahead of the halving.
BTC/USDT 1-week chart, BTC/USD 1-day chart
If the bulls seize the opportunity to buy the correction, Bitcoin price could push north, clearing the range high at $73,777. Enhanced buying pressure could see the apex crypto record a new all-time high at $75,000 or, in a highly bullish case, tag the $80,000 milestone. This would denote a climb of about 10% above current levels.
Multiple technical indicators support this outlook, starting with the Moving Average Convergence Divergence (MACD) moving well above the orange band of the signal line. This suggests a strong bullish cycle, accentuated by the large bars of the volume indicator.
Also, the Awesome Oscillator is well above the midline. The position of the Relative Strength Index (RSI) also points to a strong price strength, adding credence to the bullish thesis.
BTC/USDT 1-day chart
On the other hand, the RSI is dropping to show falling momentum. If the trajectory extends and the RSI crosses below the 70 threshold, it would trigger a sell signal. This could see Bitcoin price fall back below the $69,000 threshold, or in a dire case, extend a leg lower to tag the $60,000 psychological level. This would denote a 15% fall below current levels. Sidelined and later buyers could have an opportunity to buy the dip here.
Also Read: Bitcoin price continues to rise, but do not ignore strong signals of correction
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