Bitcoin’s rally past the $100,000 threshold was short-lived, as the leading cryptocurrency came tumbling below the level barely 24 hours later. This 14% correction within the past week was driven by market participants, especially long-term holders , taking profits., on-chain metrics like realized profit and perpetual futures funding rates signal that the market is stabilizing and profit-taking has eased off.Bitcoin’s correction last week triggered over $1.
“This represents one of the largest liquidation cascades in USD-notional terms since the November 2022 FTX collapse, and with half of these in Bitcoin positions, it also marked the second largest long liquidation event in USD-notional terms for Bitcoin-related trading pairs. In terms of Bitcoin itself, approximately 4,350 BTC were liquidated, marking the fourth highest daily liquidation since 2019,” analysts elaborated..
If funding rates decline further, it indicates that BTC traders are beginning to unwind excessive long leverage, possibly leading to a more balanced market. However, an increase in the rates suggests that investors are adding risk to their long positions and that there is renewed speculative demand. Meanwhile, low realized profit levels indicate that any further sell-offs from investors would be less dramatic, and this will allow bitcoin’s price to find an equilibrium in supply and demand.What Is Sui Network : The Ultimate Guide in 2024One Weekly Email Can Change Your Crypto Life.Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments.