The reasons for the Bitcoin BTC crash under $8,000
The reasons for the Bitcoin BTC crash under $8,000.
Bitcoin BTC has broken the descending triangle in which it had been for months, wandering in a very boring range.
If many were expecting a breakout up, it is the opposite that has occurred with a fall in Bitcoin price of almost $2,000 in minutes!
The boss Bitcoin has also dragged altcoins down, of course, a drop of 20% and sometimes even 30% as for EOS that day!
XRP resisted well but Ethereum, Litecoin and all the cryptocurrencies took a slap leaving a bright red market.
So, let’s see what may be the reasons for this Bitcoin BTC crash.
Expiration of Bitcoin Futures CME Contracts
At the end of the month, there is the closing of the Bitcoin Futures CME contracts, these Bitcoin Futures contract clearly have an impact on the Bitcoin BTC price given that the basis of these contracts is the upward or downward speculation of the future price of Bitcoin BTC.
Bitcoin Futures represent hundreds of millions of dollars in positions that are closed at the end of the month.
So, it seems that the closing of these Bitcoin Futures contracts has brought the price of Bitcoin down as we have seen with this BTC Bitcoin crash of almost $2,000!
Liquidation of long positions on Bitmex
Bitmex is also a margin Bitcoin trading platform and hundreds of millions of dollars in “long” position on the Bitcoin BTC price were liquidated the other day.
One of the most important amounts this year on Bitmex.
600 million dollars in liquidations of long positions on Bitcoin BTC were liquidated on Bitmex the day of the Bitcoin crash!
If many speculative positions accumulate on one type of position, it is tempting for big players in the market to play the opposite and liquidate all these market positions.
The non-event BAKKT
When the whole market expects something, it’s often the opposite that happens.
Buy the rumor, sell the news, as people say.
The entire crypto community on Twitter or Youtube saw BAKKT as the messiah who was going to save the crypto market from the claws of this bear who keeps all the cryptocurrency in a bear market that has been going on for almost two years!
BAKKT that has launched, it must attract large institutional investors in Bitcoin and cryptocurrency.
But the launch of BAKKT did not meet the expectations of the crypto community and it is a timid start that we are witnessing.
In the future, this platform Bitcoin Futures could yet increase in volume and confirm the interest of institutional investors for Bitcoin.
A fiasco that gave some creative ideas to some people who posted many humorous images or gifs related to the more than shy launch of BAKKT.
So here you have the main reasons that may explain this Bitcoin BTC dump.
And now what will happen to the Bitcoin price?
Many are predicting a future decline towards $7,000 or $6,000.
Again, no one can predict what will happen and if the majority expects a further fall in the price of Bitcoin, the opposite could also happen.
It is certain that the entire crypto market is eagerly awaiting the end of this Bitcoin BTC correction in order to see the market move up again.
Altcoins have still broken low price records in this difficult bear market where some crypto projects are failing due to lack of funds.