Bitcoin Drops Below USD 10,000, Erases 24 Hour Gains in Minutes
After staying above USD 10,000 for around half a day, bitcoin (BTC) dropped below this important level once again, in 10 minutes erasing all its gains in the past 24 hours. (Updated at 15:51 UTC: updates throughout the entire article).
At pixel time (15:07 UTC), BTC trades at USD 9,557 and is unchanged in a day. The price is still up by 8% in a week and 14% in a month.
Other coins from the top 10 are down by 1%-3%, while the total market capitalization is now also unchanged in day (USD 272 billion).
BTC price chart:
As reported today, after BTC surpassed the USD 10,000 level, the BTC chart was showing signs of a possible major breakout after a series of failed attempts at moving higher. However, it seems that this recent breakout has also failed.
While crypto analysts are looking for reasons that prompted the selloff, earlier today, crypto researchers at Santiment warned to stay "cautious" and watch BTC metrics such as daily active adresses, trading volume and "an up-and-down social volume" in order "to see which way momentum begins moving over this next week."
"It will be crucial to see whether [fear of missing out] kicks in now, or profit takers end up taking the safe route with the expectation of buying below USD 10,000 again," they said.
Also, on the major crypto derivatives exchange BitMEX, the selloff caused a large amount of “sell liquidations”, with USD USD 269 million in sell liquidations seen in an hour.
after the CEO said hours before this madness that the real bull market will get started at $15k— Cryptonator1337 (@cryptonator1337) June 2, 2020
BiTmex scam pic.twitter.com/g9cDc2inQS— BetoCrypto (@BetoCrypto) June 2, 2020
High volumes. BTC Futures hit $9350 low. Insurance Fund got hit too. NO ADL.— CZ Binance 🔶🔶🔶 (@cz_binance) June 2, 2020
Observed some increased latency on some APIs. A new V2 API that is 10x faster was rolled out this morning. Encouraging all API users to switch to V2. pic.twitter.com/eCF0aQEM5C
Amount of Liquidations in the past 24 hours by exchanges. In total $992.68M was liquidated!— CryptoDiffer (@CryptoDiffer) June 2, 2020
In the past 24 hours, 39,924 people were liquidated. The largest single liquidation order occurred on @BitMEXdotcom - $BTC value $10M
Data source: @bybt_com pic.twitter.com/bIecDK9Vr3
My hypothesis is this may be related to experiences with the Chinese stock market which has hmm let’s say interesting characteristics, as well the prevalence of crypto tokens that are thinly disguised schemes.— Matthew Graham (@mattysino) June 2, 2020