Bitcoin Sees Massive Liquidation Of Long Positions Within 24 Hours

The past few days have seen an increase in retail and institutional crypto selling as Bitcoin failed to climb above the $45,000 resistance level. Cryptocurrency data aggregator Coinglass posted data showing that investors liquidated $25 million worth of long Bitcoin positions yesterday likely in response to the position of the most valuable crypto asset in the world.

Investors Close Long Positions Despite Increased BTC Inflows

Bitcoin’s market cap also dropped to below $800 billion as the crypto asset lost nearly 10% of its value. Bitcoin could not escape the recent sell pressure despite the increased inflows from institutional investors last week. It still didn’t convince other investors and traders to stick with BTC.

Bitcoin started last week at above $45,000 but fell slightly to below $42,000 at the end of the week. The volatility shows what seems to be a major trend this year, as it implies that Bitcoin does not appear immune to rate hike environments. It shows that Bitcoin is struggling in an environment with a high increase in rates, just as the traditional stock market is struggling, according to Market Analyst at eToro, Simon Peters.

There have been different speculations regarding where the Bitcoin market is headed, and nothing is clear about the asset’s direction of movement in the next few weeks. But one thing is the market sentiments of the past few weeks resulted in the crypto asset being overbought. Presently, the crypto asset is suffering the impact of that market position, Peters reiterates

Exchange Supply Also Dropped Significantly

Bitcoin exchange flows have also received serious attention over the past few months. The increased outflows have resulted in a massive fall in exchange supply in the world’s leading digital exchanges, hitting an all-time low.

Last week, investors withdrew $6.6 billion worth of BTC from exchanges, but the daily average BTC exchange inflow has risen slightly due to the recent fall in price.

Crypto analytics platform Glassnode reported that the daily on-chain exchange inflows for BTC were $667 million yesterday, which is higher than the outflows of $530 million.

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