The price of BTC just broke through $45,000, and within less than 12 hours, it encountered a major waterfall. In just 10 minutes, it erased the gains since December 18th, creating a huge "gate" that caught the market off guard!
As we all know, January 4th is the day when the genesis block of Bitcoin was created, marking its 15th anniversary this year. Is this sudden drop a "blood sacrifice"? ☹️
What are your thoughts? Feel free to join our chat room for a discussion, quick access >>
Mysterious Reasons
When it comes to the "culprit" behind this dramatic change, whether it's AICoin Square, the chat room, or X, all point to one report — Matrixport's report on "SEC's expected rejection of Bitcoin spot ETF in January"!
Yes, despite the strong optimism in the market regarding the outcome of "SEC's final decision on ARK & 21Shares' application on January 10th," with Bloomberg ETF analyst James Seyffart even suggesting a 90% chance of approval, Matrixport went against the tide (whether it's a rational decision or not is debatable). In any case, after the report was released by the media, BTC and altcoins plummeted, resulting in a major crash 😱😱😱
Urgent Flight of Big Players
In just 10 minutes of the crash, the liquidation volume reached $360 million, causing heavy losses for long positions!! It's worth noting that at the beginning of the waterfall, big players had already started to flee urgently.
Data shows that after breaking below $44,000, the Binance BTC/USDT perpetual contract started to close short positions, accumulating $183 million in buy-to-close positions, including 6 orders of tens of millions. This is a signal for us to set up alerts, pay attention to the movements of big players, and hedge in a timely manner.
Current Sentiment Reflected in Funding Rates
After a round of liquidation, the funding rate for Binance BTCUSDT perpetual contracts dropped from a high of 0.0901% to 0.01%, indicating a significant decrease in the number of people bullish on BTC, possibly due to long positions being liquidated and significant losses. With the current price rebounding to $42,000, the liquidation chart shows that the downside risk is still significant, so be cautious and hedge against risks!
Liquidation chart tip: The latest price line is more biased towards the left price range (indicating that the price may go even lower), making long positions more susceptible to liquidation. (How to Use Liquidation Chart)
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