Bitcoin hit all-time highs above $ 58,000 on Sunday evening. From this mark, the cryptocurrency began to correct, and the decline stopped at about $ 53,500. The result of these movements was the liquidation of $ 420 million in margin positions per hour and $ 1.12 billion per day. Over 93% of the positions subjected to the final liquidation were long.
how notes one of the analysts, this development of events became quite natural, as in two weeks retail investors increased the volume of leverage used by almost 50%.
That was expected, retail’s leverage increased almost by 50% in the last two weeks (ByBit exchange as a reference) pic.twitter.com/Ru7JJQhUga
— Max N (@greyswan_) February 22, 2021
BTC has lost $ 80 billion from peak levels in capitalization. The current value is still equivalent to 10% of gold capitalization, estimated at $ 10-11 trillion. At a price of $ 58,000, Bitcoin traded at par with a kilogram of gold.
“This is not a bear market, just a healthy reset. Organic enough for continued growth, ”says analyst Michael van de Poppe.
Other major cryptocurrencies behaved in a similar way. Ethereum set a new high above $ 2,000 and subsequently dipped to $ 1,840, while Binance Coin is trading around $ 270 after rising to $ 340.
Yesterday, the Whale Alert service recorded 36 transactions totaling 13,204 BTC ($ 722 million) within an hour that left the purses of the Coinbase cryptocurrency exchange.
🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 4,501 #BTC (256,327,624 USD) transferred from #Coinbase to unknown wallet
Tx: https://t.co/C4bQHhzkEe
— Whale Alert (@whale_alert) February 21, 2021
Not long before that, a separate transaction for 4,501 BTC was sent. According to one of the versions, MicroStrategy may be behind the transfers, which recently raised $ 1 billion to buy cryptocurrency. MicroStrategy has used Coinbase in the past to purchase BTC. One of the analysts, however, assertsthat these wallets are not associated with Coinbase, but with OKEx.
The Santiment firm notes that along with the rise in the price of bitcoin, the volumes of transactions made in the blockchain continue to grow. The current daily average is $ 28 billion. The last time comparable figures were recorded in January 2018, when bitcoin declined from its previous peak of $ 20,000.
In addition, the number of mentions of bitcoin on Twitter has reached a new high, The Block notes. During the week ending February 14, about 675,000 such tweets were sent, up 17% from the previous high in mid-January.
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