Led to the liquidation of long-term leveraged buy positions worth 400 million dollars in one hour.
According to an analysis by the account @KobeissiLetter on platform X, which provides analyses related to stock and financial markets, it was said: "The problem of cryptocurrency liquidity: as we have witnessed countless times this year, Friday and Sunday nights often see significant movements in the cryptocurrency market. We just witnessed a drop in the price of Bitcoin by 4000 US dollars in a matter of minutes without any noteworthy news."
He continued: "Why? Liquidity is scarce. In addition, leverage in the markets has reached record levels currently. As a result, a sudden rush in selling volume leads to a cascading sell-off, exacerbated by historical amounts of leveraged trades being liquidated. This cryptocurrency market is still structurally 'bearish' in nature. We do not consider this a fundamental drop."
This means that cryptocurrency prices like Bitcoin move rapidly and strongly at times even without significant news to drive them, due to low liquidity or high leverage, or weekends like Friday and Sunday when major traders are absent.
It is worth noting that the price of Bitcoin is currently trading at $86,594 according to coinmarketcap.
Source: The Kobeissi Letter account on (X)
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