Wow. In the span of two minutes, Bitcoin (BTC) spiked $300 from the $9,920 to more or less above $10,200. The leading cryptocurrency proceeded to lower by $200 in the 5 minutes which followed this rally.
Chart of BTC’s price action during the last several hours from TradingView.com
According to Skew.com, a crypto derivatives tracker, in excess of $3 million worth of BTC roles on BitMEX were liquidated during this maneuver. Most of the liquidations were sell side liquidations, suggesting a large number of traders had been quite short.
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At existing, many Bitcoin and Ethereum futures markets are printing negative funding rates. This corroborates the sentiment that a large number of traders are presently short on the cryptocurrencies.
The S&P 500 and other stock indices crashed over 2.5 % during Tuesday’s trading session. This will come after the stock market printed a clear best previous week.
The U.S. dollar is also rallying.
Additionally weakness in the S&P 500 and strength in the U.S. dollar is actually likely to suppress Bitcoin, particularly as gold also tapers cheaper.