Bitcoin’s hourly price change in % terms paints a much different picture.— Yassine Elmandjra (@yassineARK) February 19, 2020
A 9.1% hourly drop ranks 122nd.
In 2013, the month of April alone saw Bitcoin drop >9% more than 20 times. pic.twitter.com/3V2dKd2ibI
Liquidating Bitcoin LongsSince climbing back above $10,000 on Tuesday, Bitcoin’s price stayed within the $10,000 to $10,200 range before this sudden drop in price that bottomed out as low as $9,500. The drop itself was sudden and drastic at almost 10 percent in an hour. The reason for this has also been debated across the cryptocurrency community. One theory as to why the price suddenly collapsed has to do with the fact that more than $100 million worth of long contracts were liquidated on BitMEX, alone.
This information was confirmed by derivative market trader Skew (@skewdotcom) on its Bitcoin market futures website that showed the huge spike liquidation at BitMEX.
Watched the entire thing unfold. Saw a couple 7-10M liquidated longs come through. Big boy squeeze.— joe (@joevezz) February 19, 2020
More USDT Minting at TetherAnother factor to consider with the movement of the Bitcoin price is Tether. The USD stablecoin saw $60 million USDT minted just before the price collapse. Tether’s influence on the cryptocurrency market is well documented, but not always predictable. burn or move coins in order to take circulating funds out of the market. With these movement’s out of the market, Bitcoin’s price has continued to rally against expectation. Then, with the recent minting, the expectation would have been a market rally.
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