Wednesday , April 14 2021
Home / Commodity Blog / Bitcoin Crash in February Removed Leverage Traders from the Market – Glassnode

Bitcoin Crash in February Removed Leverage Traders from the Market – Glassnode

Summary:
According to on-chain analytics provider Glassnode, the correction in the crypto market at the end of February purged excessive leverage from the markets. Glassnode analyzed the second correction since the bull market, which started at the end of 2020, in a report published on March 1. Bitcoin, which declined from ,300 to ,343, experienced a 25% correction. This decline is small compared to the correction that passed 30% when Bitcoin fell from k to k in January. Glassnode suggested that these retractions are generally good for the crypto market, and the recent correction was due to the liquidation of leveraged positions held by speculators. The speculation of major market corrections are positive events as they flush out speculation, leverage, weak hands, and test holder

Topics:
Mark Stevenson considers the following as important:

This could be interesting, too:

Ibrahim Anifowoshe writes Bitcoin Edging Toward K: Why Is the Coin Teasing?

Andrew Moran writes Commodities Week in Review: March 29 to April 2

Mark Stevenson writes JPMorgan Sees Institutional Opportunity Due to Falling Bitcoin Volatility

Ibrahim Anifowoshe writes Bitcoin Hits K, Edges Closer to Breakout

According to on-chain analytics provider Glassnode, the correction in the crypto market at the end of February purged excessive leverage from the markets.

Glassnode analyzed the second correction since the bull market, which started at the end of 2020, in a report published on March 1.

Bitcoin, which declined from $58,300 to $43,343, experienced a 25% correction. This decline is small compared to the correction that passed 30% when Bitcoin fell from $42k to $28k in January.

Glassnode suggested that these retractions are generally good for the crypto market, and the recent correction was due to the liquidation of leveraged positions held by speculators.

The speculation of major market corrections are positive events as they flush out speculation, leverage, weak hands, and test holder conviction.

The report stated that with the Bitcoin price finding new support, some key market indicators such as open positions in futures, funding rates, and the price premium of Grayscale’s investment products were also reset.

The futures market’s open positions, which refer to contracts that have not yet been terminated, fell 22%, or almost $4 billion, after reaching an all-time high of $18.4 billion. Glassnode stated that the funding rates of perpetual futures contracts were also zeroing, indicating that investors were not willing to take short positions.

Previous combinations of decreasing open interest and a reset of funding rates indicate a cleanup in speculative trading has occurred.

If you have any questions and comments on Bitcoin today, use the form below to reply.


© MarkStevenson for Commodity News, 2021. | Permalink | No comment |
Published under: Bitcoin

Leave a Reply

Your email address will not be published. Required fields are marked *