Bitcoin Halving (BTC) is just moments away from happening today. And the uncertainty hit the Bitcoin price over the weekend with a drop of close to 12%. This sparked panic on the BitMEX crypto exchange, causing the highest volume of contract settlements since the Coronavirus crisis hit the world.
Bitcoin dropped from close to $ 10,000 to $ 8,100 in a matter of hours, as the Halving event lurked. This surprised most of the cryptoverse and, above all, crypto traders and analysts who are always vigilant.
The fall of Bitcoin generated panic in BitMEX moments of Halving
This sudden panic forced BitMEX traders and investors to settle more than $ 278 million of Bitcoin Futures contracts, just minutes from Bitcoin’s Halving (BTC).
That is the highest amount since March 13 for BitMEX, according to information from crypto data analyst Skew. When the total daily value of the long and short positions reached over $ 700 million.
The vast majority of Bitcoin contract endings on BitMEX that we saw on Sunday, were from sales contract settlements. This is generated when the price of Bitcoin (underlying asset) falls below a limit set by investors. Which causes many to start getting rid of their long-term, or long, positions.
This, like a lifeline before the violent variations that the world’s first cryptocurrency can present.
“The massive amount of selloffs indicates that the leverage was skewed towards the bullish side.”
The BitMEX team comments.
This bullish sentiment should not surprise us. Well, as we have reported in CryptoTrend, the crypto market in general feels positive with the event of the Halving of Bitcoin (BTC) on the doorstep.
But, not only that, but it has been the normal one in the crypto market since Bitcoin touched $ 3,000 in March. As a consequence of the announcement of the Coronavirus as a pandemic, the panic that led to the entry into quarantine and, consequently, the closure of borders and the international market.
Prices will increase
Meanwhile, Henrik Anderrson, chief investment officer at Australia-based Apollo Capital, is of the opinion that the price drop seen over the past weekend could still be short-lived, and BTC ends up rising in price today, after Halving. Bitcoin.
“There is room for prices to go up, as excessive leverage appears to have ended at BitMEX. In the short term we believe that $ 10,000 is a psychologically important level for Bitcoin. If we can maintain a price above 10K we will see greater confidence in the market. “