The dust has settled and we are seeing the adverse effect of the massive price swing that took BTC down before than 10%. Data showed that more than $3.5 billion was REKT during that trading session. Thinking of the event, it is still a shock that something as wild as that could happen on a day with so much bullish outlook. It was tagged El Salvador “Bitcoin Day” as the currency commenced operation as a legal tender in the country.
A previous report stated that yesterday was similar to “Black Sunday” concerning what took place. Amidst all the chaos, the responsible factor of this increased volatility is what many sought after. Let’s consider two factors.
The crypto derivatives are mostly bearish and as a result, many tend to overlook this aspect of the market. Before the massive correction, Coinfomania noted that there was still a lot of bearish dominance as it stated that barely 48% of the open orders as of the time are from long positions.
Recent data has shown how the derivative market affect the spot as the latter seems to follow the first in terms of price movement. A repeat of the recurring trend of the spot following the derivatives is one of the factors responsible for the price swing.
The only way small HODLers could bring BTC prices this low is through a much-calculated effort. This will include publicity and FUD. A resounding bearish call was not made either did any negative news worth a large FUD dropped. This singles out the small bag holder from taking the blame although a few joined.
The whales are the only group that could have caused a massive dip like that in a short period due to their large bags and the liquidity of the asset. Nonetheless, a whale that is not likely to sell soon (El Salvador) buys 150 BTC, bringing its total holding to 500.
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