Bitcoin has dropped to as low as $30,323 on Monday being pressured from leveraged long derivative liquidations. Meanwhile, options traders are taking a bearish stance on Ether.
Bitcoin is trading around $34,857 as of 22:30 UTC. Slipping 10.15% compared to the previous 24 hours. Bitcoin’s rate 24-hour range varied between $30,323-$38,951.
Bitcoin’s price crumbled within 24 hours, crumbling from $38,951 at 22:00 UTC Sunday to as low as $30,323 by 17:00 UTC on Monday. In a span of just 18 hours, the world’s first cryptocurrency fell by more than $8,500, a net loss of over 20%. Since then, the price has risen a bit, standing at $34,857 as of press time.
As reported by data firm Bybt, Sunday was by far the single largest liquidation day in the past three months, with Binance alone servicing over $500 million in long position liquidations, representing the crypto version of the so-called “margin call”.
Even so, Bitcoin’s selling spree is not necessarily a bad omen for the cryptocurrency, according to many market observers.
“Today’s decline should be viewed as a healthy correction driven by smart institutional players that acquired BTC from $20,000 on its hike to $30,000,” stated David Lifchitz, chief investment officer at ExoAlpha. “The worrying sign that we have pointed to our investors was not that Bitcoin price was increasing but rather its velocity – the momentum with which it did that and the amplitude of the day-to-day market moves.”
