A Bitcoin bloodbath has unfolded, with the price plummeting below $100K, leaving traders anxious and whales seemingly absent. This sudden drop has sent shockwaves through the crypto market, sparking a wave of sell-offs.
Bitcoin's descent to a four-month low has triggered a chain reaction, influencing the entire altcoin market, including Ethereum, XRP, BNB, and Solana. As a result, the crypto market's total valuation has taken a $400 billion hit in just 24 hours.
But here's where it gets controversial...
The question on everyone's mind: Why is Bitcoin's price dropping?
It appears that whale capitulation, coupled with retail conviction, is a significant factor. On-chain data reveals that Bitcoin whales have been cashing in on their profits, while retail traders have been consistently buying during dips. In fact, Bitcoin wallets holding between 10 and 10,000 BTC have sold nearly 38,400 BTC since October 12.
On the other hand, retail traders with balances above 0.01 BTC have accumulated 415 coins during the same period. Santiment notes, "Bulls need a complete reversal of this trend to expect a sustained crypto price rebound. Markets rise when key players accumulate, not when small wallets shed."
And this is the part most people miss...
The heavy liquidation of long positions, amounting to over $1.1 billion, has contributed to a long squeeze. Additionally, the midterm fear of further capitulation to fill the CME gap at $92K is a significant concern. CoinMarketCap's Fear and Greed index dropped to around 27/100, indicating extreme fear among traders.
So, what does this mean for the future of Bitcoin and the crypto market? Will the bears continue to dominate, or will a rebound be on the horizon? These are questions that crypto enthusiasts and traders are grappling with.
What are your thoughts on this crypto market turmoil? Do you think Bitcoin will recover, or is this the beginning of a prolonged bear market? Feel free to share your insights and predictions in the comments below!
