Top 3 Reasons for Bitcoin Price Crash Below $93,000
Today, the crypto market saw a noticeable drop, with Bitcoin falling below the $93,000 mark. Just last Friday, Bitcoin hit an all-time high of $99,588 on Binance, but it has since decreased by over 6% to reach a low of $92,326. In the past 24 hours alone, Bitcoin’s price has fallen by 3.6%. Experts point to three main reasons for this decline.
Firstly, many long-term Bitcoin holders began taking profits as the price approached the critical $100,000 resistance level. According to James “Checkmate” Check, a former chief on-chain analyst at Glassnode, long-term holders have sold about $60 billion worth of Bitcoin supply in the last month. Check noted that a significant portion of the profit-taking occurred in November, marking the heaviest selling pressure seen so far in this cycle. Interestingly, it’s not just original holders selling their Bitcoin; those who bought at the previous peak of $68,000 have sold 198,000 BTC in November, indicating that investors who weathered the last major correction are now cashing in on the recent price spike.
Secondly, the futures market has witnessed a considerable number of liquidations that have exacerbated the price drop. Data from Coinglass shows that in the last 24 hours, total liquidations amounted to $577.39 million, with long positions accounting for $468.98 million.
In response to these events, Singapore-based QCP Capital made a statement regarding the situation, emphasizing the impact of profit-taking and liquidations on the current market conditions. It’s clear that these factors have contributed to the recent volatility in the crypto market, and investors are keeping a close eye on how Bitcoin will perform in the coming days.
