Popular Crypto Trader Claims Bullish Hope for Bitcoin Persists Despite $936 Million Liquidation
Bitcoin’s price experienced a sudden and significant drop, falling from $70,820 to $65,000 in just a few hours, resulting in a 5.8% decrease. This unexpected decline caused chaos in the cryptocurrency market and led to a massive loss of $936.31 million within a day.
During this turbulent time, Bitcoin spot ETFs became the center of attention, with significant withdrawals totaling $55.07 million. Among them, the Grayscale ETF GBTC stood out with a concerning single-day net outflow of $166 million, further contributing to the day’s volatility.
According to data analysis by SoSoValue, Bitcoin spot ETFs collectively experienced a total net outflow of $55.07 million. This movement reflects a significant reevaluation of investment strategies within the cryptocurrency market. Grayscale’s Bitcoin Trust (GBTC) led the decline, with a staggering single-day net outflow of $166 million. GBTC, a well-known investment vehicle for institutions and accredited investors seeking exposure to Bitcoin, witnessed a notable shift in investor sentiment.
In contrast to the overall outflow trend, BlackRock’s ETF (IBIT) emerged as a notable outlier, reporting a single-day net inflow of approximately $111 million. This unexpected influx of funds into IBIT amidst the market exodus suggests a divergence in investor strategies.
The recent drop in Bitcoin’s price caused a significant loss for traders who had borrowed money to invest in cryptocurrencies. Around $936.35 million was lost in this manner, with the majority of it, $823.97 million, coming from traders who had bet on prices going up. On the other hand, traders who predicted a drop in the price of Bitcoin experienced a liquidation of $112.23 million in the last 24 hours.
A popular trader named Jelle recently highlighted a significant event set to occur on Bitcoin’s Pi Cycle Top indicator. The Pi Cycle Top is a well-known tool used to observe Bitcoin’s bull markets and has a history of accurately signaling major price tops for the cryptocurrency. Jelle points out that the current price of Bitcoin is consolidating below the indicator’s longer-term trendline, specifically the 2X multiple of the 350-day moving average. According to on-chain analytics firm Glassnode, this moving average currently sits at $76,000. If Bitcoin’s price rises above this level, it could indicate a notable change in the cryptocurrency’s trajectory.
Currently, Bitcoin is trading at $67,515, reflecting a slight drop in price and a decrease in market capitalization to $48.223 billion.