Bitcoin has experienced a significant decline, dropping to a low of $92,971 late on Sunday, effectively wiping out all its year-to-date gains. This downturn has coincided with a staggering $580 million in liquidations across various cryptocurrency exchanges. The most substantial liquidation order recorded was a BTC/USD position valued at $29.98 million on the Hyperliquid platform.
Crypto analyst and CEO of Into The Cryptoverse, Benjamin Cowen, noted that Bitcoin experienced a “death cross” recently. He remarked on social media that previous occurrences of death crosses have often correlated with local market lows. Cowen suggested that if the current market cycle has not concluded, a bounce for Bitcoin could be expected within the next week.
Market intelligence platform Santiment echoed Cowen”s insights, indicating a potential reversal in price. They reported that Bitcoin”s social dominance reached a four-month high during the recent dip below $95,000, revealing a spike in discussions that signify significant retail panic and fear, uncertainty, and doubt (FUD).
Furthermore, Tom Lee, chairman of BitMine, speculated that the recent decline in the crypto market might be attributed to trading firms facing undisclosed losses. This situation has seemingly provided an opportunity for aggressive traders to instigate liquidations. However, Lee remains optimistic, asserting that the downturn is unlikely to disrupt the broader trajectory towards what he describes as an “ETH supercycle,” and he anticipates that the market will stabilize within two months.
