Bitcoin Takes A Dive & Altcoins’ Drop Hard, But People Are Still ‘HODLing and Not Selling’
BTC price goes down to about $55,600 and Ether as low as $1,930 as 366,073 traders get liquidated for $2.02 billion. But the crypto market is already recovering the losses.
Historically, April is one of the best months for Bitcoin's price, however, the beginning of the month is anything but so.
Today, the price of Bitcoin took a fall to $55,600 and is still not looking done with the correction. In tandem with BTC, the majority of the cryptocurrency market has gone down with it too, which has been enjoying an onslaught of bulls while the leading cryptocurrency consolidated.
Down 5% to 20%, Ether is back at $1,945, XRP near $0.880 with FIL, UNI, DOT, XLM, TRX, BTT, IOTA, BSV, AAVE, XTZ, ATOM, KSM, ENJ, STX, DENT, and UMA recording double-digit losses.
As a result, the total market cap, which surged past $2 trillion for the first time this week, is now near $1.90 trillion.
However, the market hasn’t topped as Ki-Young Ju, CEO of data provider CryptoQuant, points out people are holding and not selling their BTC.
“Are we in the market cycle high? No. When the market reaches its peak, everyone deposits BTC to exchanges to sell. The number of inflow addresses across all exchanges was at its highest in 2018 Jan, while it hit a three-year low a few days ago.”
And bitcoin shorts continue to be punished.
CMO of a blockchain security company in Chengdu shorted #Bitcoin and lost up to 300 million RMB. More dramatically, the money belonged to the police and was seized through an illegal exchange.
— 8BTCnews (@btcinchina) April 7, 2021
Overeager and overleveraged longs, however, aren't unaffected. As a matter of fact, the degen traders are the reason Bitcoin sees pullbacks time and again.
In the past 24 hours, over $613 million Bitcoin positions have been liquidated, as per Bybt. In total, 366,073 traders have been liquidated for $2.02 billion.
Following this, funding rates on Bitcoin perpetual contracts have gone down some, with the highest on Huobi at 0.1051%.
Long Bitcoin, Short U.S. 5 Year Treasury
In other news, Bitcoin bull Mike Novogratz is shorting the five-year Treasury as a hedge against policymakers pulling back their monetary support, saying, “Everyone long bitcoin should be short the five year.”
“I’m short a lot of interest rates,” Novogratz, chief executive officer of Galaxy Digital, said in a Bloomberg Television interview.
“To me, being short the five-year part of the yield curve is a great hedge for any portfolio, crypto or non-crypto.”
U.S. 5 Year Treasury yield is currently at 0.866%, down from 0.97% last week. The yields on these bonds have been rising since last August when it was at 0.193% but still nowhere near the 9.52% in late 1988.
The billionaire investor, who is a former partner at Goldman Sachs, further said in the interview that the price of the assets is rising for the very same reason, central banks relentlessly printing money.
This week, the total cryptocurrency market capitalization hit a new all-time high above $2 trillion, and according to Novogratz, we can easily rise twice as much this year.
“We’re up to 0.5% of global wealth in crypto, and it will be 1% by the end of the year.”
While bullish on crypto and short on bonds, Novogratz is also betting on Facebook in anticipation of the social media giant introducing the Novi digital wallet this quarter. “All of a sudden, you’ll have 2.4 billion people connected to this crypto space,” he said.