Update: The price of Bitcoin (BTC) is currently changing hands at $8,631, CoinStats data shows. The leading cryptocurrency has barely budged since its precipitous drop that was recorded earlier today, which means that more volatility could be in store for traders.
Today we have seen the first volatility spike of Bitcoin (BTC) price within the extremely bullish market of early 2020. It had been predicted. Moreover, now it is explained.
Recently, Deribit futures & options exchange revealed the market manipulation that caused today's rapid price decrease. It occurred at 11:00 AM (UTC) exactly.
Someone shorted an enormous sum of $101M in Bitcoin (BTC) perpetual contracts (BTCUSD) between 11:00 and 11:10. That's how the market responded:
Thus, the most stunning bearish spike of this January is caused by the market dump of some Deribit whales.
Was the bubble predicted?
So called 'CME gap' or the bubble on the BTCUSD futures market had been mentioned by Dutch analyst Michael van de Poppe two hours before the dramatic liquidation.
It looks like his second prediction is also playing out as Bitcoin (BTC) is trading at almost $8600 at printing time. By the way, both scenarios by Mr. van de Poppe are optimistic. As a result, we shouldn't brace ourselves for further Bitcoin (BTC) price dumps.
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