Institutions provoked the collapse of Bitcoin by staging a sell-off, The Block insiders report.
On the morning of December 4, an unknown trading company took a profit on Bitcoin, reducing positions by $500 million. The sale triggered the liquidation of 1.3 billion long positions in the derivatives market ranging from $42,000 to $51,000.
On Saturday, Bitcoin collapsed to almost $42,000. By Monday, BTC had recovered some of its losses, exceeding $49,000. However, institutions triggered a broader shift in the market.
Open interest in the derivatives market fell from $21.6 billion to $16.7 billion in less than an hour. However, purchasing interest for the long term remains.
The steep peak of the first cryptocurrency pushed most of the top crypto assets into the red zone.
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