Bitcoin recently dropped under $16,800 on 16th December which marks the lowest in over 2 weeks. This movement was divergent from the temporary excitement on 14th December when Bitcoin touched $18,370.
Over a week Bitcoin dropped 3.8% while S&P Index 500 mentioned the decline was 3.5%. BTC bulls are in comfort knowing their significant role while 15th December witnessed $206 million in Bitcoin futures contracts being liquidated by them. The loan industry also has concerning data showing a high number of low-income consumers since 2019. Their data states 26% more monthly payments towards car loans over 3 years.
Concerning Statistics In Bitcoin
Switzerland, EU, England, and US central banks have 50 points basis interest rate that indicates continuous rising borrowing costs. The cryptocurrency market is unstable while Armanino, an accounting firm, reportedly ended their service of crypto auditing that started in 2014.
Chinese crypto retail business demand appears positive because USD Coin is stable. This also reveals the difference between the US dollar and Chinese peer-to-peer business. Increased buying demand appears pressurized by a bearish market and 100% fair value. USDC premium is 99% higher than on 12th December being 101.8% pointing towards high Asian investor demand.
Leverage Buyers Land In Trouble
Externalities are eliminated by a long-to-short metric which may single-handedly affect the stablecoin market. After Bitcoin dropped to $16k, professional traders reduced their long leverage positions. The Binance trader ratio dropped to 1.04 level from 1.11 while Huobi decreased to 0.05 from 1.01.
The average stablecoin premium is 101.8% in Asia which proves that buyers no longer trust cryptocurrency. In addition, liquidation worth $206 million in Bitcoin futures contracts indicates increased leverage from the buyers’ end. This might set up a huge storm and lead to another major correction. At the moment, BTC price is continuously and largely dependent on conventional stock markets. Many auditing firms believe this $16k level is a BTC retest.
