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Bitcoin Plunges to $10,600 the Day After $1 Bln Worth of BTC Futures Was Traded on CME

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Thu, 09/03/2020 - 14:35
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Alex Dovbnya
Bitcoin tanks another seven percent to $10,600. Here's what triggered this meltdown
Bitcoin Plunges to $10,600 the Day After $1 Bln Worth of BTC Futures Was Traded on CME
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Bitcoin is having another really bad day.

The world's largest cryptocurrency plunged more than seven percent to an intraday low of $10,653 at 12:26 p.m. UTC on the Bitstamp exchange, its lowest level since Aug. 2.

Bitcoin2
Image by tradingview.com

More than $108 mln worth of Bitcoin longs were liquidated on the BitMEX exchange alone.

Another day of carnage 

The ferocious bears managed to extend the rapacious stock market rout that took place on Sept. 2.

This is Bitcoin's largest string of losses since late Maywhen the crypto king plunged from $9,800 to $8,800 in two days before resuming its uptrend.

As reported by U.Today, BTC reversed its head-fake move to $12,000 and plunged all the way to the low of $11,151 before seeing a relief rally that turned out to be very short-lived.

Skew data shows that Bitcoin futures offered by Chicago-based CME Group surpassed $1.1 bln, which implies that institutional traders started seizing the opportunity to short Bitcoin.

CME
Image by @skewdotcom

On the bright side, BTC is still changing hands above $10,000, thus extending its second-longest streak above this pivotal level.

Related
Ethereum Keeps Chipping Away at Bitcoin’s Dominance as ETH/BTC Hits Highest Level Since Early 2019

The two reasons behind the crash

For those who were watching Bitcoin inflows to cryptocurrency exchangeswhich recently reached the highest level in 37 daysthe writing was certainly on the wall, according to blockchain sleuth Chainalysis.

Chainalysis
Image by @philip_gradwell

The painful retreat can also be attributed to the strengthening U.S. Dollar Index (DXY). Today's rally to 93 was weighing down gold and other precious metals.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.