Bitcoin, which has been over $ 30,000 in recent days, has dropped to $ 29,000 with a sharp decline today.
While investors are trying to understand the reason for this decrease, some analysts stated that the drop in BTC may be due to a large Bitcoin sale on the Binance exchange and the inflation figures that came above expectations in the UK.
According to the news of Coindesk, more than $ 25 million Bitcoin futures were liquidated in this fall of BTC, while 98% of them were long positions.
Evaluating the decline in BTC, senior analyst Vetle Lunde argued that the thought of clearing high leverage was behind the decline.
“The drop in Bitcoin looks more like a leverage cleanup.
In addition, inflation rates from the UK may have pressured risky assets, including BTC, to sell.”
Apart from Lunde, the popular crypto trader “52kskew” also stated that the drop in BTC could be due to the sale of 16,000 Bitcoins worth $467 million on the Binance exchange.
“16,000 BTC were sold on the spot market on the Binance exchange. This sale is of an unusual size. Usually this type of sale happens before the bad news comes out.”
Apart from Bitcoin, all altcoins including Ethereum were also affected by this drop. ETH is trading at $1,974, down 6% in the last 24 hours.