Vetle Lunde, an analyst at K33 Research, said that when Bitcoin fell to around $29,000 this afternoon.
While the sell-off does not appear to be rooted in any immediate fundamental reason, a surprise increase in UK inflation of more than 10% in March may have weighed on market sentiment.
Also in the mix, in the so-called long squeeze, more than $25 million in Bitcoin futures was liquidated, with 98% of the positions being long.