Bitcoin fell sharply this week, with the deepest crash falling to around $25,000, a new low since June this year. Decentrader, a cryptocurrency market data tracking platform, pointed out that the sharp drop eliminated the leverage bubble, but there is currently a liquidity crisis, and it only needs to sell 463 bitcoins worth $12 million to cause the currency price to fall by 1%.
(Previous summary: Blockware analyst: Bitcoin will still become a $10 trillion asset in the next 100 years)
(Supplementary background: The reason why Bitcoin plummeted 9%? The community dug up the Taiwanese stock lamp “Ba Ni Ni” and announced that it would enter the currency circle, and blood flowed into a river 5 days later)
Affected by factors such as Space X’s writedown of $373 million worth of Bitcoin held by it, Evergrande Group’s application for bankruptcy protection in the United States, and the fear that the Federal Reserve will continue to raise interest rates, Bitcoin (BTC) suddenly fell by more than 10% on the 18th. Breaking through $26,000, the biggest drop since the FTX crash in early November last year.
Coinglass dataIt shows that the single-day liquidation of the cryptocurrency market on the 17th exceeded 1.04 billion US dollars, of which, the liquidation of long positions reached 855 million US dollars, and the liquidation of short positions reached 194 million US dollars.
Further reading:Biggest drop this year!Bitcoin once plummeted by 10%, approaching 25,000, Ethereum fell below 1600, and the entire network exploded 1 billion magnesium
Bitcoin Liquidity Crisis
Notably, cryptocurrency market data tracking platform Decentrader pointed outThe sharp drop in Bitcoin this time has eliminated the leverage bubble. First, the funding rate has become negative. Second, the open interest that has been increasing has disappeared. Third, the long-short ratio has fallen back to a more reasonable level. s level.
Bitcoin funding rates have turned negative. Source: Decentrader
But Decentrader’s Bitcoin liquidity mapdataIt shows that a large amount of liquidity has been wiped out after the Bitcoin crash. Given the current liquidity crisis, only 463 BTC equivalent to $12 million can be sold to cause a 1% drop in Bitcoin prices.
A large amount of Bitcoin liquidity has been wiped out. Source: Decentrader
Bitcoin System reportin March of this year, when the cryptocurrency market was hit by a series of US regional bank failures such as Silicon Valley Bank, 856 BTCs had to be sold to affect the currency price by more than 1%, and at that time, 856 One BTC is worth about $17 million.
The fact that liquidity has been so low lately proves that the Bitcoin market may be more susceptible to manipulation.
Still, there are analysts in the market who are bullish on Bitcoin. Joe Burnett, chief analyst and product manager of Bitcoin miner Blockware Solutions, asserted today that Bitcoin will still become a $10 trillion asset, and the currency price will be about 20 times higher than $26,000.
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Tags: BTCDecentraderBitcoin Liquidity
2023-08-20 13:35:48
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