Bitcoin experienced a sudden and significant drop in price during the Asian overnight trading session on Thursday, resulting in over $62 million in BTC long positions being liquidated. The decline, which saw BTC fall $1,000 in minutes to $22,500 while ETH declined to $1,570, was reportedly driven by concerns regarding the viability of crypto bank Silvergate.
Prior to this event, trading volume had been relatively low for the week. Both BTC and ETH are now trading below their 20-day moving averages, with technical indicators such as the Relative Strength Index showing a slowdown in momentum. However, STX, the native token for Stacks, saw a 15% increase in price over the past week, driven by the emergence of Ordinals, a protocol that allows NFTs to be included in bitcoin transactions. Other notable events of the week include the Digitization sector falling to the bottom of the rankings among the CoinDesk CMI sectors and the DeFi sector moving to the top.