Bitcoin has seen about $77 million in liquidation with $40 million happening in the past couple of hours across the various derivative exchanges.
The 3 percent loss of the Bitcoin value cannot be linked to investors replacing the asset with altcoins as Ethereum is also down by 5 percent, and Cardano (ADA) is down by 7 percent in the last 24 hours.
The latest market activity has been very dramatic with Bitcoin falling from $19,820 to $18,960 in less than 24 hours. As of press time, the asset was trading at $18,733, the lowest since July 13. This is not far from the $18,600 recorded on July 4. The 3 percent loss of the Bitcoin value cannot be linked to investors replacing the asset with altcoins as Ethereum is also down by 5 percent, and Cardano (ADA), is down by 7 percent in the last 24 hours.
However, it is plausible to link the entire market pullback to the poor run of Bitcoin since it has the lion’s share of the total crypto market capitalization. This being said, Bitcoin has seen about $77 million with $40 million happening in the past couple of hours across the various derivative exchanges. Most crypto liquidations happened on OKX and Binance.
According to data, OKX saw $70.37 million in liquidations and Binance recorded $39.03 million. Analysts also predict that the price could fall further to $15,000 or below in the coming weeks. Based on the current price, Bitcoin has declined by 60 percent the year to date. Analysts suspect that the Federal Reserve’s measures to drastically reduce inflation from the 8.5 percent level to 2 percent could be a reason.
Professional traders bearish on Bitcoin
On the other side, pro traders have been observed to be bearish since last week. The Bitcoin futures premium has also been said to be below 3 percent for the past few weeks, indicating that professional traders are hesitating to add leveraged long positions.
It is worth noting that the indicators are supposed to trade anywhere around 4 percent to 8 percent annualized premium in a healthy market. Also, T3 Trading Group’s Scott Redler has predicted that the price could fall to as low as $10,000 if the support level of $17,600 is broken.
Despite the market condition and the prediction for an additional fall, investors are said to be buying the dip. According to a report, wallets holding 1-10 BTC have seen a significant surge to above 750K. It is reported that this has seen a steady rise since Bitcoin hit below $50K in December 2021 and January 2022. In a comment, hedge fund billionaire Anthony Scaramucci mentioned that the rise of institutional investors could play a huge role in the growth of Bitcoin wallets as well as its adoption to hedge against rising inflation.
This has been confirmed by BlackRock which believes that institutional interest is still strong despite the market being in a bearish mode.
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