BitMEX co-founder Arthur Hayes warned that crypto market leader Bitcoin could drop to $78K after an 'ugly start to the week.'
Bitcoin and Crypto Market Downturn
The post by Hayes followed after Bitcoin's price dropped from a high of $86,115.43 to a low of $80,052.49 in the last 24 hours. As of 1:08 a.m. EST, Bitcoin has slightly recovered to trade at $82,114.84, down 4% in the past 24 hours, according to CoinMarketCap data. BTC’s correction coincided with a broader crypto market retracement. All of the top 10 largest cryptos by market cap suffered 24-hour losses.
Reasons for Liquidation
The drop in prices seen in the last 24 hours led to over $619 million liquidated, according to data from Glassnode. The majority of trades that were liquidated were long positions, accounting for over $526 million of the liquidated amount.
Rise of Fear in the Market
Investor sentiment also turned more fearful, with the Crypto Fear And Greed Index plunging seven points – from 'Fear' to 'Extreme Fear'. Renowned trader and analyst Michaël van de Poppe suggested that the market’s correction was due to whales pushing prices down to 'scoop as much' crypto from investors at discounted prices.
The continued price drop of Bitcoin and other cryptocurrencies raises new projections and concerns among investors. Experts continue to monitor the changes and draw conclusions about the market behavior.
