The roadmap brought the bitcoin price and bitcoin futures investments back to where they were in early October, before a massive price surge sent the token to an all-time high of $69,000 on Jan. November 10
It was last down 3.9% at $47,567.
Traders say the fall weekend is associated with a widespread shift away from riskier assets in traditional markets due to worries about the Omicron COVID-19 variant, combined with trading liquidity Lowers tend to affect cryptos over the weekend.
“Our expectation is that the rest of Q4 will be a tough month; we don’t see the bitcoin strength we normally see after one of these down days,” said Matt Dibb at Stackfunds, a Singapore-based crypto fund distributor.
“Leveraged markets have been completely reset and open interest in leveraged markets has been completely reset.”
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Cryptocurrency data platform Coinglass shows open interest – the total number of futures contracts held by market participants at the end of the trading day – across all exchanges last at 16.5 billion USD compared to 23.5 billion USD on Thursday and as much as 27 billion USD on 10 November.
“There was hardly any liquidity at the end of the week, so the markets are a bit more vulnerable to blows,” said Joseph Edwards, head of research at crypto brokerage Enigma Securities. shock – that and a lot of demand comes from institutions and they won’t be trading at the weekend.” London.
Over the weekend, as the price dropped, investors who bought bitcoin on margin saw exchanges close their positions, triggering a flurry of selling. According to Coinglass, a series of retail-focused exchanges closed over $2 billion in long bitcoin positions on Saturday.
Some exchanges allow traders to bet 20 times or more the size of their investment, meaning that a small move in the wrong direction can cause exchanges to liquidate customer positions when Their original investment is gone.
Ben Caselin at Asia-based crypto exchange AAX said liquidity has become thinner as bitcoin moves away from exchanges to offline digital wallets.
Ether, the world’s second-largest cryptocurrency, was also affected on Saturday, albeit with less difficulty. However, it fell 5.5% on Monday to US$3,965, from a November 10 high of US$4,868, although it rose ahead of its larger rival.
On Sunday, one ether rose to as high as 0.086 bitcoin, its highest level since May 2018.
On Monday, CME Group Inc will launch mini ether futures, which it hopes will allow traders to better manage the risk of trading the coin.
https://globalnews.ca/news/8427658/bitcoin-price-down-weekend-trading/ Bitcoin price plummets after weekend’s sharp drop – National