As opposed to $ 60,000 – Bitcoin (BTC) flirts briefly with $ 43,000, as the past few days raised hopes of a boost to levels near $ 60,000. The crash took the markets by surprise, the explanations coming from traders and analysts mostly look like accusations at the moment.
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Bitcoin crash: abuse of leverage
Bitcoin is bottoming around $ 43,000 on Bitfinex today, September 7, 2021. Bitcoin has only been below $ 46,000 for a few minutes. It is trading at $ 46,391 at the time of writing and is currently recording a daily loss of 9.47% to almost $ 4,900.
How to explain this market collapse after Bitcoin made a foray above $ 52,000? According to CryptoDiffer, the exchanges recorded a massive sell-off amounting to more than $ 3.54 billion in derivatives markets in the past 24 hours. For analyst Willy Woo, derivatives markets are also responsible for today’s sharp drop, as with most crashes:
“I don’t know exactly what just happened, but here is the sequence of events. The liquidation took place mainly in the derivative markets (like most crashes). ”
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Trader Michaël van de Poppe also mentioned the liquidation of over-indebted traders’ positions leading to a chain reaction, as at the origin of this blood-red market.
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Collapse or logical correction: whales equally to blame?
For trader and analyst Scott Melker, the responsibility for the crash lies with the whales in a context that should however be bullish for Bitcoin, with the latter being legalized by El Salvador:
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“The whales get rid of Bitcoin the day El Salvador makes it legal tender. “
Technically, can’t today’s crash be interpreted as a logical major correction after the cryptocurrency market cap rose 16% from August 30, 2021 to September 6, 2021? Bitcoin was not the only one to have made a significant breakthrough during this period. Altcoins like Ether (ETH) and Solana (SOL) also performed well.
This Bitcoin crash contrasts with the forecasts of a Bitcoin at $ 100,000 by the end of 2021, perspectives that no longer come only from PlanB but also from analysts to whom players in traditional finance grant credit.
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