After the Bitcoin ETF was approved, the BTC price exceeded $48,000 and has continued its downward trend since then.
As the decline in Bitcoin continues to deepen further, BTC fell below $ 39,000.
During this decline, $117 million of leveraged positions were liquidated, while $116 million of this consisted of long positions.
When we look at altcoins, it seems that they move together with BTC.
While the selling event after the Bitcoin ETF approval continues, the fear and greed index is at the “Neutral” level with 50 points.
At this point, Bitfinex analysts speaking to Coindesk said that the recent decline in Bitcoin prices was due to short-term investors and the decline may continue.
Stating that the decline in Bitcoin wiped out the gains of short-term BTC investments and the realized loss levels increased, analysts said that investors sold at a loss and these sales increased the decline of the market.
“More than half of the profits made by short-term investors were wiped out below $43,000.
Many investors, especially those who purchased BTC less than a month ago, exited the market with losses in the face of the continued decline.
At this point, for short-term investors who tend to react more harshly to short-term market fluctuations, such a significant drop in profits could be a harbinger of further selling pressure.
Additionally, the number of investors who expect Bitcoin to fall to $38,000 or lower in the coming weeks is also increasing.
“In view of this, it would not be surprising if there was a price correction even further below the current levels in the market.”
*This is not investment advice.
