Optimism Persists for Bitcoin Despite $936 Million in Liquidations, According to Renowned Crypto Analyst
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In an unexpected turn of events, the price of Bitcoin took a sharp dive, dropping from a high of $70,820 to $65,000 within mere hours—a swift 5.8% decline. This precipitous fall sent ripples throughout the digital currency sphere, triggering losses to the tune of $936.31 million over the course of the day.
During this tumultuous time, Bitcoin spot ETFs garnered significant focus as they experienced sizable redemptions amounting to $55.07 million. The Grayscale Bitcoin Trust (GBTC), in particular, experienced notable outflows, shedding $166 million in a single day, adding to the market’s instability.
Expert analysis from SoSoValue indicates a marked net withdrawal across Bitcoin spot ETFs, pointing to a pivotal change in the investment dynamics of the crypto market.
The Slide of GBTC
The GBTC led the downturn with a significant exodus of $166 million in one day. This fund, which has traditionally served as a reliable option for institutional and sophisticated investors seeking to partake in Bitcoin, has been impacted by the evolving sentiments of market participants.
IBIT Makes Gains
On the flip side, IBIT—an ETF by BlackRock—exhibited contrasting behavior with a remarkable $111 million net inflow reported on the very same day. This contrarian movement in IBIT’s favor suggests diverse approaches by investors amidst the financial upheaval.
Losses for Traders
The recent downturn has led to substantial financial damage for traders who took leveraged positions in the cryptocurrency market. In total, about $936.35 million was wiped out, with a striking $823.97 million loss from bets on rising prices, while those betting on a drop in Bitcoin’s value saw liquidated positions totalling $112.23 million over the last 24 hours.
Bitcoin’s Pi Cycle Top Indicator
Trader Jelle has brought attention to an important potential event concerning Bitcoin’s Pi Cycle Top indicator, known for its historically reliable predictive ability during Bitcoin bull markets. The Pi Cycle Top is composed of two moving averages and has previously marked significant peaks in Bitcoin’s price trajectory.
Currently, Jelle notes Bitcoin prices consolidating below the Pi Cycle’s more extended trendline, particularly the 2X factor of the 350-day moving average. On-chain analytics from Glassnode places this moving average at around $76,000, hinting that surpassing this mark may indicate a pivotal turn in Bitcoin’s market direction.
Overview of the Market
Recently updated figures show Bitcoin is trading at $67,515, exhibiting a minor pullback alongside a reduction in market value, now totaling $48.223 billion.
Also Read: Post-Halving Altcoin Performance: Expectations and Predictions
What are your predictions for Bitcoin’s next move?
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