Bitcoin prices over the last 24 hours have been nothing short of volatility. While it spent so many weeks with very little movement, the coin is seeing one of its biggest moves in months. This has also triggered a lot of reactions from Traders and also indicators.
However, the significant change in price is not one that favors the asset and bullish traders. This is a result of the massive decline in value during the period under consideration. It is also worth noting that at the time of writing the cause of the change in price is still present.
Bitcoin kicked off trading at 28692. Data gathered from Coinstats showed that the asset was relatively calm during the first half of the day. Nonetheless, the platform showed that it saw a gradual decrease before a sharp one at noon. The chart above also indicated that the apex coin dropped to a low of $25,649.
It is worth noting that this was the lowest on some platforms. At the time of writing, the coin is showing little signs of recovery. However, this will not guarantee a pullback in more than 2%. Currently down by more than 10%, BTC may close with losses exceeding 7%.
Bullish Bitcoin Traders Lose Almost $500 Million
The image below gives a breakdown of what transpired in the derivatives market. Traders lost a total of more than $1 billion over the last 24 hours.
The bulls were the top losers as REKT long positions made up more than 80% of the total liquidation. According to data from Coinglass, they lost more than $800 million as a result of the latest massive decline in value. Meanwhile, short positions were less than $200 million.
Binance seems to be losing its foothold in the derivatives market as the third trading platform with the most liquidation. OKX received a lot of attention as it made up more than 20% of the total liquidation. Additionally, the top asset with the most liquidation is bitcoin.
What Caused The Dip?
Many turn to fundamentals as the cause of the most downtrend. This is not far from the truth as many claimed that one of the reasons for the sudden change in price trajectory was SpaceX. They blamed the company’s denial of holding any bitcoin as the main catalyst.
Others say the rising interest in the United States was another reason for the decline in value. However, on several occasions, traders turn to the crypto market when such happens. It is also worth noting that recently, the crypto market failed to react to any hike in interest. So, this theory is also subject to scrutiny.
Another cause could be derivatives. Before now, the asset was mostly flat and lacked notable volatility. As a result, many anticipated a massive decline in prices. This led to huge funding for short positions. With mounting pressure from Futures, a small catalyst was responsible for bitcoin to buckle.
