Bitcoin traders have become accustomed to reduced volatility in recent months, but historically, the cryptocurrency frequently experiences price changes of 9% in less than three days. Many were caught off guard by the current 12.4% decline from $29,440-$25,880 between August 15 and August 18, which triggered the worst liquidation since the FTX collapse in November last year. The KD figure shows that the 2% drop in the order book depth for Bitcoin tickers $26,058 has paralleled the drop in volatility. Market participants may have changed their canons to reflect the current state of the market.
Bitcoin Prices Fall For The First Time In Weeks
So it seems sensible to investigate the futures market to determine how the decline to $26K will affect things. The goal of this investigation is to ascertain whether market makers and whales have switched to a negative stance or whether they are now seeking larger prices for protective positions on the hedge. The first decrease occurred between March 8 and March 10, during which time Bitcoin fell by 12.4% to $20K, reaching its lowest level in more than seven weeks. This correction came when SB, a significant partner for operations for several Bitcoin businesses, was liquidated.
The next large movement took place between 19th April and 21st April, and it caused Bitcoin’s price to fall by 10.4%. After G. Gensler, the chairman of the SEC of the United States, spoke to the HFSC, it returned to the $27K mark for the first time in the above three weeks.