Bitcoin Price Drops to $93K as Liquidations Increase and Long-Term Holders Sell Off
Bitcoin is on a bit of a rollercoaster ride lately, with the price slipping to $93,000 as liquidations soar and long-term holders take profit. What does this mean for the average investor? Well, let’s break it down!
In the past 24 hours, the total crypto market liquidations on the buy side reached a whopping $337.6 million. That’s a significant sum, and it’s no wonder that margin traders sitting in long positions saw heavy losses as a result. This sell-off was largely driven by forced liquidations, with heavy selling happening at exchanges that offer perpetual futures trading.
But it’s not just margin longs getting squeezed out. Glassnode, a well-known analytics firm, has identified Bitcoin long-term holders (LTHs) as another key player in the current market downturn. These holders, particularly those with a 6-month to 12-month time horizon, have been selling off their holdings at an average cost 71% lower than the current market price. That’s some serious profit-taking!
As the market sentiment shifted from bullish to bearish, we saw a surge in short positions opening up. This caused Bitcoin’s funding rate to climb and the price to drop closer to $90,000. Some traders are eyeing a potential drop below $94,000, which could trigger even more selling pressure. So, where will the dip buyers come in to save the day?
It’s important to remember that investing in Bitcoin, like any other asset, carries risks. This article does not offer investment advice or recommendations. It’s crucial for every investor to conduct their own research and make informed decisions based on reliable information.
The cryptocurrency market is always full of surprises, so buckle up and stay tuned for more updates. Who knows what twists and turns lie ahead for Bitcoin and its price!
