Bitcoin (BTC) hit a major dump, sliding from $98,500 to $95,500 on Sunday night. The price drop affected the entire cryptocurrency market, with XRP and Dogecoin (DOGE) being the most affected. Both tokens dropped more than 5%, whereas Solana (SOL), Ethereum (ETH), and Cardano (ADA) have been down 2-5%.
Futures Liquidation Impact
The sell-off was a massive hit on futures markets, where more than $500 million worth of positions were liquidated within one day. According to Coinglass, 197,083 traders were impacted by the liquidations. Binance alone suffered the biggest single liquidation during the trading session filled with massive volatility. Long liquidations occurred for $366 million, while shorts suffered $127 million.
This market turbulence aligns with the words of Galaxy Digital CEO Mike Novogratz, who said on Nov 11 that there will be inevitable corrections. Novogratz said that the high level of leverage has been a significant driver of price swings in the market. Nevertheless, he does not seem discouraged by the recent price tumble; he still believes that Bitcoin will cross the $100,000 mark. As of press time, BTC is trading at $98,711, showing a 0.60% increase over the past day.
Bitcoin Nears $100K and ETFs Sees Record $3.38B Weekly Inflows
Smaller altcoins and futures linked to mid-cap coins saw more than $100 million in liquidations. These were higher than the liquidations for Bitcoin and Ether, a rather unusual event on the market. This trend suggests traders adopt a more risk-averse attitude, especially on less liquid products. Mid-cap tokens have been sharply down in trading largely due to the recent speculative trading that has been seen in the market.
Whales Accumulate Bitcoin
In the meantime, large investors, commonly known as whales, used the dip to buy more Bitcoin. According to blockchain analytics platform CryptoQuant, Binance saw large outflows during the price decline. In particular, six new wallets bought 1,110 BTC in a few hours, which shows awareness among large investors. CryptoQuant CEO Ki Young Ju remarked, “While you’re selling, someone else is buying.”
Technical analysts are still slightly bearish on Bitcoin’s short-term outlook. The cryptocurrency is currently at its highest level, 28% above its 50-day moving average. With the market in this period of increased volatility, everyone is waiting for the next big move. Regardless of whether Bitcoin’s price will rise or fall, the following days are quite important for the entire cryptocurrency market.
