The fall in the value of cryptocurrency is caused by institutional sales

Many traders attribute the current downturn in the cryptocurrency market to the actions of institutional investors. We are talking about active sales undertaken by many whales.

BTC fell below $ 43K on Saturday from a high of 57K, which was set during the trading session on Friday. Despite the rise in the cost of bitcoin to 49 thousand, the cryptocurrency has not yet regained its performance.

The sales made by large investors are to blame, experts say. They exacerbated the shift in the price of cryptocurrency in the market. We are talking about the sale of bitcoins in the amount of more than $500 million, which took place on Friday morning.

 

 

This led to an "aggressive liquidation" in the cryptocurrency derivatives market. During the fluctuations between the price of $ 51,000 - $ 42,000, long positions of $ 1.3 billion were liquidated. The total amount of open positions in the derivatives market fell from $ 21.6 billion to $ 16.7 billion in less than an hour.

Such liquidation is not uncommon. Over the past 12 months, the destruction of high leverage positions has exacerbated the decline in the cryptocurrency market more than once. Traders have to deal with negative news and this aggravates the panic.

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