Bitcoin and Altcoins See Another Sharp Drop – Here’s the Theory Behind It

Selling pressure continues in the cryptocurrency markets. Bitcoin, the largest cryptocurrency, experienced another pullback today after yesterday’s sharp decline.

The price of Bitcoin dropped by approximately 2.5% in about 40 minutes, falling from the $83,000 level to $80,800. At the time of writing, $BTC is trading at $81,292.

A graph showing the drop in $BTC price.

The volatility in the market has also led to significant liquidations in the derivatives sector. According to data from the last 24 hours, the total amount of liquidations reached $961.17 million. Of this, $857.97 million was from long positions and $103.20 million was from short positions.

Ethereum’s loss of over 7% in 24 hours and Cardano’s drop of over 8% reveal that selling pressure is not limited to Bitcoin but has spread to the altcoin market as well.

Was Today’s Decline Caused by Massive Selling?

Meanwhile, according to data from the on-chain analytics platform Arkham, Heka, a quantitative and systematic trading fund under Abraxas Capital, transferred approximately 2,000 $BTC to the Kraken exchange about two hours ago. Heka is known to focus particularly on major crypto assets such as $BTC and ETH, and their related derivatives.

*This is not investment advice.