Bitcoin Drops Below $7,000 Leading To A $180 Million Liquidation Streak On Bitmex
Bitcoin price dropped below $7,000 which created a panic among investors who have been trading Bitcoin long before the drop. Bitmex, the largest derivatives exchange in the world saw a massive liquidation streak, where $179.3 million worth of longs were liquidated after the price drop.
At the time of writing, BTC was trading at $6,946.38. This is the first time Bitcoin has traded below $7k since May this year. The constant dips in the last quarter of 2019 might create some panic, but most of the bullish traders and analysts believe these are minor bumps which will get corrected in time for the halving scheduled in the first quarter of 2020.
Bitcoin had quite a roller coaster year, where it started out from the clinch of the longest crypto winter in 2018 and valued just over $3,500. The price moved slowly in the first quarter but saw a major bump in April and continued green movement up until September after touching as high as $13k. The slide was as dense as the rise, and the king coin has been finding it difficult to maintain its position above $10k ever since.
Crypto Trade who goes by the name of “The Wolf of Wall Street” pointed out that the retail interest in Bitcoin has slowed down in November. This might be because of the rumors about Bitcoin's price skyrocketing with the significant block reward halving just a few months away. Thus people might be more interested in Hodling bitcoin than ever.
Seems that retail interest is slowing down. Looking at wallets with balances of ≥ 0.1 $BTC there hasn't been much growth in November.
It's like people don't know that it's a deflationary asset with a limited supply.
— The Wolf Of All Streets (@scottmelker) November 21, 2019
Plan B, another crypto trader who became quite a celebrity in recent times because of the stock-to-flow ratio charts believed that the positive difficulty adjustment prevented the much-feared miner capitulation tweeted,
+2% difficulty adjustment: no miner capitulation.
Historically blue followed by yellow/red indicates a temporary downwards difficulty adjustment, hashrate & price have in the past increased from this point. pic.twitter.com/JAgECasC0P
— PlanB (@100trillionUSD) November 21, 2019