Bitcoin (BTC) experienced a major selling spree over the weekend with its price going down to $18,000. However, the top crypto asset has rebounded by over 10% since then and was trading at $20,563.37, at the time of writing.
Co-founder of crypto exchange, 100x, Arthur Hayes cited data from Coinglass noting that the sale of Purpose Bitcoin (BTC) ETF of Canada was by Friday close, as per the North American timing. This implies that they did the sale of 50% of their holdings in a single day, which is quite a lot of BTC to have sold in a day.
Commenting on Bitcoin pricing dropping to $17,600. Hayes says that the drop in the prices “smells like a forced seller triggered a run on stops.”
Further, Hayes says that he anticipates more such instances of forced selling as the crypto lending market tells some dark stories.
“The market soon recovered to minimal volume once the sellers unloaded their bags. Expect more pockets of forced selling of BTC and ETH as the market determines who is swimming naked given the terrible state of risk management by cryptocurrency lenders and their excessively relaxed lending terms.”.
Can Bitcoin Go Further Down?
On Sunday, June 19, Bitcoin rebounded to the $20,000 mark after a rough down ride over the weekend. Since it is floating above the $20,000 level, crypto enthusiasts wonder how long it will last.
Peter Schiff, a Bitcoin critic, says that people shouldn’t get too excited seeing Bitcoin rise above $20,000 as “20 is the new 30.” Schiff points out that nothing covers a downward journey in a straight line.
This slow-motion crash has really been quite well organized. There is now no indication of the capitulation that creates a bear market bottom.
Schiff made the prediction that BTC will go below $20,000 and ETH to under $1,000, as soon as the U.S. reported its inflation data for May 2022. Schiff’s prediction came true in just a week.
Arthur Hayes too is not sure if there is more suffering to come. However, he is certain that more opportunities are on the way for the “skilled knife catchers”.
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Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/06/22/canadas-purpose-bitcoin-btc-etf-sells-50-of-their-holdings-in-a-single-day/