Bitcoin took sharp down ride this week and dropping past the key $70,000 hover near $68,700 before sliding closer to $67,000. This sudden drop as always triggered a massive way of forced closures across the crypto market, wiping amount staggering amount of $1.2 billion in leveraged trade within 24 hours.
What happened to traders
When trader's use borrowed money to bet on crypto prices and then exchange automatically closes their position if price go against them too far.
• Between $1.2 billion and $1.6 billion in trade were forcedly closed in single day.
• About 90% of bets were by traders who were expecting the price will go up and eventually got in sorm.
• Bitcoin alone accumulated roughly $677 million of the total loses, with nearly $500 million disappearing at the moment when price fell below $70,000. One single trade on the exchange Hyperliquid lost over $31 million.
Why is price falling
Several global events push investors away and it pushed the price down and they went for cash option:
• Rising US inflation: New reports showed S. inflation ran hotter than expected in October. This made the U.S. dollar stronger and raised fears that the Federal Reserve might hike interest rates in December, which usually hurts crypto prices.
• Global tension: Fresh military conflict in middle east made global investors nervous, which leads them to pull money out of the market.
• Big investors pulling back: US spot Bitcoin funds (ETFs) saw nearly $1.9 billion leave the market in early November. At the same time, shaky news in the tech stock world including sudden leadership changes at Nvidia and major stock indexes dropping the Bitcoin-heavy company Strategy added extra fear to the market.
What come next
Right now cryptocurrency market is on bety edge we have to see if Bitcoin finds it's pace again and climb above $70,000. Until the global economic news and investors confidence settle down, price seems to remain bumpy.
Now what will be your advice for traders in current market? and what you think of Bitcoin will it bounce back?
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