On Monday, there was a sharp drop in the price of Bitcoin (BTC) on the BitMEX crypto exchange, from its usual worth of over $60,000 to a staggering $8,900. However, the drop was temporary as Bitcoin quickly rebounded and reached $67,000 by 23:00 UTC. The sudden decline, which occurred around 22:40 UTC, was attributed to a massive sell-off by a crypto whale, as observed on social media and confirmed by market experts. In the midst of this, BitMEX had also restricted withdrawals for certain accounts, but assured that all funds were secure and operations were normal.
Economist Peter Schiff warned of a potential bigger downturn, citing the overconfidence of the market when Bitcoin hit $69,000 in November 2021, only to fall below $16,000 a year later. This time, market sentiment is showing signs of extreme greed, with a Fear and Greed score of 79 on the index, indicating avarice among investors. Additionally, the dynamics that drove Bitcoin to record highs have shifted, with reduced demand from the US. The Coinbase Premium index, which measures prices on the US-based Coinbase and Binance exchanges, has turned negative, and data from CryptoQuant suggests a decrease in demand from US investors. This shift is reflected in a slowdown in US spot ETF inflows, with Grayscale’s ETF experiencing outflows of $642.5 million. It is important for readers to independently verify facts and seek professional advice before making any decisions based on this information.
Can’t deny the volatility, but this just shows the ever-changing nature of the crypto market. Keep calm and HODL on!