Over the last weekend, Bitcoin (BTC) witnessed heavy selling as the BTC price took a dive all the way to $18,000. Since then, Bitcoin has recovered by more than 10% and is currently flirting around the $20,000 level.
Citing data from Coinglass, Arthur Hayes, co-founder of crypto exchange 100x writes that Canada’s Purpose Bitcoin (BTC) ETF sold a staggering 24,500 BTC by Friday close, North American time. It means that they sold 50% of their holdings in a single day which is a lot of BTC to sell in a single day.
BTCC – Purpose ETF puked 24,500 $BTC into the North American Friday close. I’m not sure how they execute redemptions but that’s a lot of physical BTC to sell in a small time frame. pic.twitter.com/BY7foKdPjY
— Arthur Hayes (@CryptoHayes) June 19, 2022
As said that over the weekend, the BTC price took a drop under $18,000 all the way to a low of $17,600. “Smells like a forced seller triggered a run on stops,” writes Hayes.
Hayes further expects more such events of forced selling as the crypto lending market has some dark stories to tell. Hayes writes:
“After the sellers dumped their bags, the mrkt quickly rallied on low volume. Given the poor state of risk mgmt by #cryptocurrency lenders and over generous lending terms, expect more pockets of forced selling of $BTC and $ETH as the mrkt figures out who is swimming naked”.
Is The Bitcoin Bottom Already In?
Bitcoin has shown a good bounce back on Sunday, June 19, after a brutal crash last week. As it floats above $20,000 for now, the bigger question is how long it will sustain. Bitcoin critic Peter Schiff writes:
“Don’t get excited about Bitcoin being back above $20K. 20 is the new 30. This is just another bull trap. Nothing drops in a straight line. In fact, this slow motion crash has been extremely orderly. No sign yet of any capitulation that typically forms a bear market bottom”.
Soon after the U.S. released its inflation data for May 2022, Schiff predicted that BTC will crash to under $20,000 and ETH to under $1,000. This happened just within a week of his prediction.
Even Arthur Hayes adds that he isn’t certain whether there is more pain left. However, he believes that there will be additional opportunities for the “skilled knife catchers”.