The cryptocurrencies prices appear to be stabilizing further after last week’s crash following El Salvador’s prevented bitcoin adoption.
The worldwide crypto market has expanded by about 3.5 percent in the last day, presently valued at $2.13 trillion.
Bitcoin, which was valued at over $52,000 before last week’s collision that erased virtually 15 percent of its value, has expanded by over 4 percent in the last 1 day, and also is currently valued at over $47,000.
FintechZoom talked with Will Head of Trading and Research at digital asset management firm TCM Capital to see his point-of-view.
Will believes the drop, which wiped out almost 20% of bitcoin’s price in just a few hours, was the result of market manipulation from institutional players taking advantage of retail investors on the ByBit exchange.
Price manipulation has always been present in the digital asset market, says Will. On the day of the drop we saw in excess of $3.1bn worth of leveraged long positions liquidated. For perspective, not one day in the prior three months had long liquidations reach over $750m.
Even more important, however, is that the majority of the liquidations occurred on ByBit. ByBit is synonymous with new retail traders that are highly inexperienced and thus susceptible to opening significant leveraged positions with the goal of making a quick buck.
Smart money usually sees this as a prime opportunity to create a cascading liquidation event and take the short side. Over 33% of all liquidations occurred on ByBit that day, with ByBit’s volume only representing just over 12% of the total volume across all exchanges.
“It’s fair to say games are being played at the moment — specifically between deep-pocketed investors/institutions and retail”. SOURCE Did Short-Selling Institutional Investors Manipulate Bitcoin Into Plunging? | Fintech Zoom – World FinanceWill