Today the cryptocurrency market saw a huge drop in the price of Bitcoin (BTC).

According to the data analytics provider Skew on Feb. 26, over $150 million worth of Bitcoin was liquidated on the trading exchange BitMEX, the most seen since the new year began. Millions of dollars of long and short positions caused the value of the cryptocurrency to fall to $8,580, a decrease of more than 6%.

$150mln+ liquidations on BitMEX today - highest in 2020 pic.twitter.com/WO7aKyNhcI — skew (@skewdotcom) February 26, 2020

Though the price of Bitcoin slightly rebounded to $8,813, this may be a difficult recovery for the cryptocurrency. The market value dropped nearly $300 in an hour on Feb. 16, bringing BTC well under $10,000.

Traders are already preparing for the possibility the cryptocurrency value may fall below $8,000. This could affect the impression of Bitcoin before the next halving event, scheduled for the week of May 18th.

However, some observers are more optimistic. Tom Lee, a co-founder of Fundstrat Global Advisors, predicted the Bitcoin price would rise to over $27,000 by this summer based on its 200-day moving average.

Global economy’s impact on cryptocurrency markets

Many crypto exchanges and blockchain technology companies have felt the impact of the potential global epidemic of COVID-19, also known as the coronavirus. Employees at Chinese companies responsible for mining have been forced to stay at home or trapped outside of cities as quarantines are enforced.

Whatever the reason for Bitcoin’s recent drop, this incident serves as a reminder that the cryptocurrency market can be every bit as fragile as traditional investments. The price of XRP crashed by nearly 60% on BitMEX on Feb. 15.