Bitcoin price sees 9% drop in four hours due to a negative combination of factors
The main cryptocurrency, Bitcoin (BTC), fell below the $ 60,000 mark reached on March 14. According to CoinMarketCap, in the past 24 hours, the price of Bitcoin has dropped by almost 9%.
At 9:41 GMT, the price hit the local low at around $ 54,568 on the Bitfinex exchange. However, at the time of writing, the BTC / USD pair was trading at $ 56,390.
1-hour BTC / USD chart at Bitfinex – TradingView.
Reasons why Bitcoin fell 9% in 4 hours
Researcher Larry Cermak noted that in just half an hour there were sales for $ 1 billion.
We’ve just seen more than $ 1 billion worth of liquidations in the last 30 minutes. People never learn and keep over-leveraging like crazy.
– Larry Cermak (@lawmaster) March 15, 2021
“We just saw more than $ 1 billion in sales in the last 30 minutes. People never learn and take advantage of themselves like crazy. ”
Most settlements took place on the Binance and Bybit exchanges.
According to the observations of Glassnode analysts, the inactive supply of Bitcoin in the last 3-6 months has reached a maximum of five months.
Previous 5-month high of 1,443,088,261 BTC was observed on 14 March 2021
– glassnode alerts (@glassnodealerts) March 15, 2021
“📈 #Bitcoin $ BTC Quantity of the last supply activity 3m-6m (1d MA) has just reached a maximum of 5 months of 1,443,142,318
The increase in the last 5 months of 1,443,088,261 BTC was observed on March 14, 2021. ”
This may indicate a revival among investors who want to guarantee unrealized profits from investments in the main cryptocurrency.
In addition, before the crash occurred, the on-chain data analysis platform CryptoQuant pointed to large BTC deposits at Gemini.
Ki Young Ju, the CryptoQuant CEO said:
This 18k $ BTC deposit is legit as it was a transaction between user deposit wallets and Gemini hot wallet.
All Exchanges Inflow Mean is skyrocketed due to this deposit. Don’t overleverage if you’re in a long position.
– Ki Young Ju 주기영 (@ki_young_ju) March 15, 2021
“This $ 18k BTC deposit is legitimate, as it was a transaction between the user’s deposit wallets and Gemini’s hot wallet.
The average entry of all exchanges has skyrocketed due to this deposit. Don’t take too much advantage if you are in a long position. ”
In addition to the selling pressure of whales, Bitcoin’s recent surge led by inflows of stablecoins into exchanges was another sign of bearishness.
Ki noted that the rise was catalyzed by marginalized capital on stablecoins, rather than institutions in the US. He explained:
“The Coinbase Premium Index has always been significantly high when the $ BTC price has exceeded 20k, 30k, 40k and 50k. It was significantly negative when the price broke 60k. This 60,000 bull run is not driven by US institutions, it all came from stablecoins. ”
The falling price of Bitcoin pulled the rest of the market together. This is what the ten most capitalized cryptoassets looked like at the time of writing this text:
The capitalization of the main cryptocurrency is $ 1.05 trillion. BTC dominance index – 60.3%.
Remember that on March 14, the Bitcoin price updated its historical high above $ 61,000.