12 hour ago
1 0
BEARISH 📉 : Bitcoin drops 15% in one of largest daily declines
Bitcoin Price Drop Overview
- Bitcoin experienced a significant drop, losing over 15% or approximately $10,800.
- The decline affected derivatives, spot venues, and the US Bitcoin ETF market.
- Implied volatility spiked, trading volumes surged, and momentum indicators suggested forced selling.
Analysis and Reactions
- Real Vision’s Jamie Coutts noted Bitcoin's implied volatility reached 88.55, nearing previous peaks during crises.
- Coinbase reported its eighth-largest trading day by USD value, with $3.34 billion traded.
- RSI level dropped to 15.64, comparable to the March 2020 crash lows.
- Macro trader Alex Krüger indicated extreme conditions typical near market bottoms.
- Galaxy’s Alex Thorn highlighted that Bitcoin was among the most oversold, compared to historical events.
Impact on ETFs and Volatility
- The US Bitcoin ETF market amplified the day's activities, with BlackRock’s iShares Bitcoin Trust (IBIT) experiencing record trading volumes.
- Net short exposures in BTC ETFs approached previous highs as long BTC ETFs held significant positions.
- Bitcoin implied volatility reached 75%, surpassing gold's volatility and marking a high since the ETF launch.
At press time, BTC recovered from $60,000 to about $64,900, reflecting a 9% gain from the session low.
