Bitcoin has unexpectedly gone down below $10,000 to $9600 in merely 24 hours. The reason for this bitcoin price drop was major longs liquidated and cashed out their Bitcoins. Almost $250 million worth of BTC was liquidated only on Okex, and approximately $150 million worth was liquidated on BitMEX itself. The market was running high, and the sudden price drop caught the traders off guard.
Bitcoin price drop- Why a sudden drop?
After Bitcoin crossed $10,000, many longs predicted that Bitcoin would go higher as investors would fear missing out on this opportunity. Some predicted that Bitcoin would even go up as high as $100,000. A lot of renowned analysts in the cryptosphere predicted that Bitcoin will continue its way on the up for a couple of weeks more.
So it is still very early to predict the reason for this sudden drop. One popular theory was the US Marshal Services (USMS) auctioned off the 4041 BTC they confiscated from different cases.
Huobi saw longs liquidating approximately $200 million
Other popular exchanges like Huobi saw longs liquidating approximately $200 million while Binance saw longs liquidating almost $186.45 million. A popular account on Twitter, Whale Alert reported that 1000 BTC (worth $9.5 million) was transferred from an unknown wallet to Binance. Many of the followers unanimously replied that the time has come to dump Bitcoin. Overall, the price drop has caused a lot of unrest in the crypto-community.
This weekend, major altcoins slipped down by more than 5% as a lot of investors dumped them for Bitcoin. However, since then BTC has been going down continuously.Â
Bitcoin, at the time of publishing, is in the $9565 range. Both, long and short term investors are hoping that Bitcoin will stop bleeding and soon start moving up. If this doesn’t happen, more whales will start liquidating their BTC and would cause even more price drop and could literally wipe out billions.
Featured image from Pixabay
