There has been a significant drop in Bitcoin (BTC) and altcoins, causing unexpected volatility in the market. Over the weekend, BTC reached its lowest levels in the past three weeks, dropping to $52,300. Alongside Bitcoin, Ethereum (ETH) decreased by 18.4%, BNB by 15%, Solana (SOL) by 10%, and XRP by 13%. While most altcoins experienced a decline, Tether Gold (XAUt) saw a small increase.
Within the last 24 hours, $831.2 million worth of leveraged positions were liquidated, with $720.3 million coming from long positions and $110.9 million from short positions. Ethereum had the highest liquidation amount at $308 million, followed by BTC with $249.2 million and Solana with $41.3 million. In total, 214,149 investors were liquidated, and the largest individual liquidation occurred in the BTC/USD trading pair on the Huobi exchange, amounting to $27 million.
The cause of this market decline has prompted speculation among analysts. Some attribute it to the uncertainty surrounding the US elections, fluctuations in interest rates, and tension and instability in the Middle East. Additionally, there are claims that a significant investor, allegedly from the traditional finance sector, has sold off all their cryptocurrency assets, according to BitMEX co-founder Arthur Hayes.
Hayes shared on his social media that his sources in the traditional finance industry have informed him of this big sale, although he did not disclose any specific names. This information has led some to speculate that the actions of this investor could be a contributing factor to the recent market drop.
Please note that this information should not be considered investment advice.