Bitcoin’s Downward Spiral: Major Sell-Off Pushes Price Lower

Bitcoin’s Downward Spiral: Major Sell-Off Pushes Price Lower
Table of Contents


  • Bitcoin’s price is on a downward spiral: The price of Bitcoin has plunged roughly 4% in the last 24 hours, breaching the $58,000 mark and dipping as low as $56,900. This extends a downtrend that began last month.
  • Analysts are worried: Market observers are sounding the alarm as heavy selling persists. Some fear this decline could be a sign of further drops, potentially pushing Bitcoin’s price into the low $50,000 territory.
  • Retail investors stay optimistic: Despite the major sell-off, some remain bullish. Smaller investors reportedly buy Bitcoin as the price dips below $60,000, viewing it as a buying opportunity.

Bitcoin, the flagship digital asset, continues to experience significant volatility, extending a downward trend that began last month. In the past 24 hours, Bitcoin’s price has dropped nearly 4%, breaking the $58,000 mark and falling to as low as $56,900.

Market observers are sounding the alarm as heavy selling action persists. Some warn that this decline could be a precursor to further drops, potentially pushing Bitcoin’s price into the low $50,000s. Blockchain analyst Lookonchain recently identified a whale that sold a staggering 3,500 BTC for $206 million within just five hours on the Binance exchange.

Markus Thielen, the mastermind behind 10x Research, highlights the decrease in buying activity alongside the rise in selling pressures. The recent drop in Bitcoin below key levels at $60,000 is causing unease among miners and Spot ETF investors. This momentous occurrence signals the ending of a three-month trading plateau.

Factors Behind Bitcoin’s Price Drop

Bitcoin’s Downward Spiral: Major Sell-Off Pushes Price Lower

There are several reasons behind the recent drop in prices. The lack of market liquidity and worries about the upcoming Mt. Gox BTC payout are both influencing factors. The distribution of approximately $9 billion worth of Bitcoin to creditors by the Mt. Gox trustee may have a substantial effect on the market.

Additionally, crypto exchange BloFin issued a research note warning of high downside risk for Bitcoin, especially if an unexpected event occurs. The decrease in Bitcoin’s value has led to considerable financial losses for crypto traders. Coinglass data reveals that over 110,000 traders lost about $310 million in the last 24 hours, with most of the losses stemming from long traders.

Specifically, Bitcoin traders bore the brunt, incurring $94 million in losses, $82 million from long trades, and $12 million from short trades. Ethereum also saw substantial liquidations, amounting to approximately $72 million. The largest single liquidation occurred on HTX (formerly Huobi), involving a $10 million long position on the top crypto asset.

Retail Investors Remain Bullish

Even with a major crypto whale selling off, small investors show impressive faith. Recent trades have caused a stir in the Bitcoin and crypto markets, especially impacting short-term trends.

Santiment, a platform specializing in behavior analytics, has revealed that the retail sector is actively buying Bitcoin below the $60,000 threshold. The dynamic between the actions of crypto whales and the excitement of retail investors creates a multifaceted view of the Bitcoin market.

While large holders appear to be cashing out, the broader investor base remains optimistic, viewing the lower prices as an attractive entry point. Bitcoin’s downward spiral and the major sell-off underscore the ongoing volatility in the crypto market. Traders and investors must closely monitor developments as the landscape continues to evolve.


Follow us on Social Networks

Crypto Tutorials

Crypto Reviews