Bitcoin Halving (BTC) is only a few moments away from today. And the uncertainty hit the Bitcoin price over the weekend with a drop of almost 12%. This caused panic on the BitMEX crypto exchange and caused the highest volume of contract processing since the corona virus crisis in the world.
Bitcoin fell from just under $ 10,000 to $ 8,100 in a matter of hours as the halving event lurked. This surprised most cryptoverse and especially crypto traders and analysts who are always vigilant.
The fall of Bitcoin triggered panic in BitMEX moments of halving
This sudden panic forced BitMEX traders and investors to settle more than $ 278 million in Bitcoin futures contracts just minutes from Bitcoin’s Halving (BTC).
This is the highest amount for BitMEX since March 13, according to crypto data analyst Skew. When the daily total of long and short positions reached over $ 700 million.
The vast majority of Bitcoin contract terminations on BitMEX that we saw on Sunday came from processing sales contracts. This is generated when the price of Bitcoin (underlying) falls below a limit set by investors. Which causes many to start getting rid of their long-term or long-term positions.
This is like a lifeline from the violent variations that the world’s first cryptocurrency can represent.
“The massive number of sales indicates that leverage was on the bullish side.”
The BitMEX team comments.
This bullish feeling shouldn’t surprise us. Well, as we reported in CriptoTendencia, the crypto market generally feels positive with the halving of Bitcoin (BTC) on the doorstep.
But not only that, it’s also normal on the crypto market since Bitcoin hit $ 3,000 in March. As a result of the announcement of the corona virus as a pandemic, the panic led to quarantine and thus the closure of the borders and the international market.
The prices will go up
Henrik Anderrson, Chief Investment Officer at Apollo Capital in Australia, believes last weekend’s price drop could be short-lived and BTC’s Bitcoin price will rise after Halving today.
“There is room for price increases because the excessive leverage at BitMEX appears to have ended. In the short term, we believe that $ 10,000 is a psychologically important level for Bitcoin. If we can keep a price above 10,000, we will see greater confidence in the market. “