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The cryptocurrency market started the day with Bitcoin falling to the level of 66 thousand dollars. While the reason for the decline was a matter of curiosity, QCP Capital analysts commented on the decline. What will be the follow-up levels in the decline and the course of the market?
QCP Capital Analysts Explained the Decline
The reasons for the sudden drop in Bitcoin and altcoins were explained by analysts at QCP Capital. Bitcoin, the leading cryptocurrency, fell again in the morning hours today, dropping back to around $66,000. Ethereum (ETH) similarly fell briefly to $3,319. According to analysts at QCP Capital, these declines are due to liquidations on exchanges.
Analysts stated that funding rates have reached extremely high levels and that these rates have been effective in the recent decline. The options market and high funding rates gave an early signal of a sharp downward movement, especially the downward trend in risk reversal.
Bitcoin fell below $66,000 after breaching the $70,000 level, while Ethereum fell as low as $3,320. This decline was driven by massive liquidations, especially on retail-heavy exchanges.
High funding rates and the recent drop brought spot prices back to the $60,000 to $72,000 range.
While the recent decline in Bitcoin has thwarted bullish investors, data from Coinglass showed that $394 million worth of leveraged positions were liquidated in the last 24 hours. Of these liquidations, $312 million worth of long positions and $81 million worth of short positions were liquidated.
In the last 24 hours, 120,310 traders were liquidated, with the largest liquidation taking place on the OKX exchange on the ETH/USD trading pair.
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