BTC $43414.51 (3.12%)
ETH $3023.19 (4.79%)
USDT $1.00 (0.05%)
BCH $540.36 (3.02%)
BSV $152.91 (3.05%)
LTC $159.38 (3.68%)
BNB $376.13 (5.60%)
ADA $2.21 (8.73%)
DOGE $0.22 (6.55%)
BTC $43414.51 (3.12%)
ETH $3023.19 (4.79%)
USDT $1.00 (0.05%)
BCH $540.36 (3.02%)
BSV $152.91 (3.05%)
LTC $159.38 (3.68%)
BNB $376.13 (5.60%)
ADA $2.21 (8.73%)
DOGE $0.22 (6.55%)

Bitcoin Crashes by $10K — Should You Buy the Dip or Sell?

Bitcoin Crashes by $10K
  • Bitcoin crashed by 10 thousand USD despite positive developments.
  • Many attribute the crash to over-leveraged bullish positions.
  • Analyst says that single-day dumps are becoming the norm for Bitcoin

The recent bitcoin crash left people surprised as market developments were positive. After all, El Salvador officially adopted BTC as legal tender. Aside from that, hodlers also organized buying bitcoins in celebration of El Salvador’s bitcoin day.

It was a bullish run, and BTC closed in on 53K USD, but it suddenly took a negative turn, dumping by 10K USD in a matter of hours.

In an analysis published on crypto data firm CryptoQuant, it shows that “the volume of Long Liquidation in less than 1 hour can confirm that this price fluctuation was majorly Futures Market-driven.”

CryptoQuant
Source: CryptoQuant

Alameda Research CEO Sam Trabucco agreed with this notion. In a tweet, he said that

when crypto rallied a ton to $65k pretty quickly, futures were at high premia, and open interest of all the important contracts was up.

Bitcoin analyst Lark Davis also took to Twitter and shared his two cents on the matter. Davis agrees that it may be due to bitcoin’s market being highly leveraged.

However, all things considered, Davis also reminded his followers that bitcoin is still going to the moon. In another tweet, he said that

bitcoin is still going to 100k, just in case you needed a reminder.

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Joseph Joestar is a CoinQuora contributor. He works in various blockchain marketing content projects, specializing in written content such as technical whitepapers, press releases, and articles.