Find out how Bitcoin crashed to $8,900 on this cryptocurrency exchange
By late Monday, Bitcoin (BTC) had dropped to an impressive $8,900 on the BitMEX crypto exchange. Meanwhile, other platforms have shown the price to be over $60,000.
However, the decline was temporary, with Bitcoin quickly recovering to $67,000 at 23:00 UTC.
Why is Bitcoin crashing on BitMEX?
This sudden collapse started around 22:40 UTC. Within minutes, it fell to its lowest level since early 2020. As of this event on BitMEX, the global average price of Bitcoin remained around $67,400.
Speculation abounded on social media, particularly on Platform X. Observers attributed Bitcoin's crash to the crypto whale's high selling price. Crypto researcher Syq provided insights, suggesting that the anonymous crypto-well sold more than 977 BTC in a two-hour increase of 10–50 BTC.
At the same time, BitMEX has restricted withdrawals to certain checking accounts. However, the exchange has confirmed that its operations are normal and all funds are safe.
“We are investigating unusual activity over the past few hours involving a user selling large orders on our BTC-USDT spot market,” BitMEX said.
Read more: 7 Best Crypto Exchanges in the US for Bitcoin (BTC) Trading
What's more, economist Peter Schiff has hinted at a more significant downturn to come. When Bitcoin hit $69,000 in November 2021, it reminded the market of overconfidence.
A year later, Bitcoin fell below $16,000, a drop of nearly 80%. Schiff suggests that the current frenzy may point to a more serious crash.
In addition, market sentiment has turned to extreme greed, with a fear and greed score of 79. This index, which measures sentiment from 0 to 100, reflects the market's current sentiment.
Additionally, the volatility that drove bitcoin to record highs has reversed, indicating a slowdown in US demand. Comparing Bitcoin prices on US-listed Coinbase and Binance, the so-called Coinbase Premium indicator turned negative.
CryptoQuant data points to a decline in the value of Bitcoin on Coinbase, a historical gauge of US investor interest. Specifically, Coinbase serves as the custodian for most US spot ETFs.
Read more: What is the Crypto Fear and Greed Index?
This change in dynamics is highlighted by the slowdown in US spot ETF revenues. For example, Greyscale's ETF saw $642.5 million in expenses.
At the same time, Coinbase's premium hit a 12-month high during Bitcoin's recent surge, indicating strong interest from US investors earlier.
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