The Bitcoin investors who are over-leveraged in the market of derivatives have been led to the sell-off that took place on 4th January, Monday. This happened while the spot, as well as futures markets of Ether, are just beginning to garner a whole lot of positive attention.
On Monday, the price of BTC dropped owing to the outbreak of the selling pressure. At almost 10 UTC the spot exchanges including Coinbase witnessed an abnormally huge number of the traders reaching sell with a volume of 6,000 Bitcoin on exchange at that hour itself. As a result, the prices of BTC declined to a low of $28,154 low, BTC had experienced such a low in the month of March 2020.
Bitcoin Rally Crumbles
On 2nd January 2021, Bitcoin had successfully managed to break through its all-time high of $34,000. In fact, they hit the record high at $34,366. Several analysts observed many investors realizing the profits in BTC following such a rapid rise.
Throughout the weekend, the BTC prices reached a new all-time high and the stock market reached new resistance levels, as stated by Jason Lau, CEO of OKCoin. He further added that the profit-taking took place near these levels and led to the sideways trading. It also resulted in several of them being over-leveraged on futures for a long. However, Lau expects the BTC price to be up due to the buying pressure.
A few profit-takings might still occur from BTC to ETH. From 3rd January, Ether has exponentially surged and spiked by almost 38.5% this year itself. In comparison to ETH, the Bitcoin price has risen by a mere 7.5% since 2021.
