An unusual market wrap happened in the past 24 hours, as Bitcoin (BTC) once fell to $30k, other altcoins following bitcoin’s plummet.
The king coin went down around 30% in the past 24 hours, fluctuating from a high of $43,573 to as low as $29,859, based on Bitwells’ s data. Later, it rebounded from declines to $37k. At the time of writing, bitcoin is changing hands at $40,200.
Facing Bitcoin’s journey downward, Tesla CEO Elon Musk tweeted that Tesla has “diamond hands,” implying that Tesla won’t sell its Bitcoin holdings.
Although Elon Musk stood by Bitcoin via Twitter, his environmental concerns about Bitcoin have resulted in several big price movements over the past few days.
On Sunday, a cryptocurrency analyst stated on Twitter that when bitcoiners discover that Tesla has sold the rest of its Bitcoin holdings in the next quarter, they may slap themselves in the face.
“Indeed,” Musk replied.
Many analysts regarded it as a hint that Tesla may have sold all or part of its Bitcoin holdings.
After the reply, Bitcoin took a drop of more than 10% to $42,204, shrinking by nearly 30% from the high of $59,543 at the beginning of this month.
Musk clarified on Twitter Monday, claiming that Tesla hasn’t sold its Bitcoin holdings. Subsequently, the price of Bitcoin rebounded rapidly, skyrocketing by $2,000 within one hour.
Before that, in a post on Twitter Wednesday, Tesla CEO Elon Musk announced that Tesla has “suspended vehicle purchases using bitcoin,” for the concern about “rapidly increasing use of fossil fuels for bitcoin mining.”
This announcement directly led to the downside of the cryptocurrency market, while the price of bitcoin slipped to around $50,000, a drop of more than $6,700, 11% of its market capitalization.
How to Reduce Risk and Make Profits in Volatility?
On May 19 (UTC), over $25 billion in liquidation was triggered due to the markets falling, which exacerbated an already nervous market mood. According to Jane Dawson, an analyst at Bitwells, liquidation, crypto bans FUD from China, and Elon Musk’s changing position may be reasons for the market’s massive volatility.
Such high market volatility and Bitcoin’s price drop also reflects the consistent instability of the cryptocurrency market.
Since Bitcoin’s recovery depends on joint efforts by both retail and institutional, with the prospects for a Bitcoin Exchange-traded Fund (ETF) approval in the U.S. this year, we can still see bullish further. Thus, Bitcoin’s recovery may occur soon after the correction.
The recent market volatility may upset many traders, because the market changes so quickly that they cannot react in time. However, there is no need to be too pessimistic or panicky for the time being.
The cryptocurrency market involves two-way trading. Even if the prices of cryptocurrencies are falling, you could still make a profit by buying or selling crypto assets, as long as your prediction on the market trend is right. Once you get prepared, you can not only reduce risks but make profits from the market volatility. Here are some tips for you to hedge loss and make profits.
Thorough Preparation Before Making a Transaction
The cryptocurrency market is full of risks and speculations, with price changing every day. Today there is a surge while tomorrow it will become a slump. Hence, before making a transaction, you need to make a proper plan and predict the trend methodically. Besides, the skilled trading operation is also quite important, especially for beginners.
If you are new to the crypto market, it is suggested that you make orders via a demo account to get familiar with trading first. Favored by beginners, Bitwells offers a demo account for every user. Upon registering, you will be given an actual trading account and a demo account. With the demo account, you can practice trading and improve your skills with worrying about losses.
Keep up With the Market
At the time of high volatility, traders are easily exposed to massive liquidation due to large price movements. Thus, traders need to follow the market changes closely all the time. Lightning-speed execution at Bitwells ensures speedy and highly efficient trading on your tablets and computers. Moreover, Bitwells offers customized trading access from all kinds of devices to you, which facilitates your trading at any time and anywhere.
Keep a Stop-Loss
Since the price fluctuates in the volatile market, please remember to make good use of the stop-loss tool on the exchange platform which enables you to lower the risks. With the stop-loss tool, once the market price reaches the preset triggered price, your positions will be automatically closed and be traded with the optimal market price available at that time.
Trading with small capital reduces risks to a great extent. In futures trading, it is suggested that you divide your capitals into multiple positions. In this way, even if the market goes against you, you can still open a position in the opposite direction to hedge loss.
Further, with leverage from exchanges, increasing buying power and multiplying profits are available for traders. For example, if you open a position using 0.01 BTC and 100x leverage, the position will be worth 1 BTC.
At the time, Bitwells (a futures exchange offering 100x leverage) will be an ideal option for traders to grow their wealth/ hedge loss against the downtrend.
Why Choose Bitwells?
Professional Team and 100x Leverage
Bitwells has professional technology and financial operations teams to provide you with an experience of simplicity and security.
Bitwells is also a futures trading exchange that allows you to make profits from both directions (long or short) with 100x leverage. With 100x leverage, you can make profits and maximize your profits 100 times with only a 1% margin.
In the derivatives market, leveraged trading is risky. Yet it does generate juicy profits when used correctly. If you are prepared for leverage trading, it is worth trying.
100% Deposit Bonus
In addition, Bitwells now offers a 100% deposit bonus for every user. When you deposit into Bitwells, the same amount of bitcoin will be accredited to your account (max. 10 BTC per deposit). If you deposit 1 BTC, you will get 2 BTC, which could be used as margin.
If you want to hedge losses and make profits from market volatility, don’t hesitate to join Bitwells.
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This article is Originally posted on CoinCentral.com
Author: PR Desk