10-Month BTC Price Drops Lead to $1 Billion Liquidation as Bitcoin Sees a Hole in $35K CME Futures

Bitcoin (BTC) turned buying trends on its head until May 10, as BTC/USD dropped below $30,000 for the first time since July 2021.

Data from on-chain analytics firm CryptoQuant showed that currency reserves are beginning to increase as crypto markets panicked.

BTC flows back to exchanges

After seeing a continued downward trend, the number of BTC on major exchanges has started to rise again.

According to CryptoQuant, which tracks the balances of 21 major exchanges, merchants sent a total of 37,537 BTC to accounts from May 6 to May 9.

The deposits came as BTC’s price action fell from $36,000 to $29,700 and then recovered to nearly $32,000 at the time of writing on May 10.

In private comments to Cointelegraph, CryptoQuant’s chief marketing officer Hochan Chung said the sell-off did not involve speculators alone, but that it was the next phase of a more concerted desire to reduce the BTC exposure of Bitcoin’s largest token holders. .

“The massive influx did not start yesterday. It has started since May,” he said.

“Bitcoin price is falling due to the sale of whales. Since early May, growing foreign exchange reserves have been increasingly dominated by whale deposits. As whales move their coins to exchanges, this is putting downward pressure on bitcoin price.

Other sources, as Cointelegraph reported, also noted the changing behavior of whales, but this nonetheless happened well above Bitcoin’s realized price of about $24,000.

Longs are punished via crypto

At the same time, other traders were less fortunate.

Related: ‘Kwontitative Easing’ – BTC Price Hits $43K in UST as Terra Emptying $2.2 Billion BTC Pocket

According to figures from on-chain monitoring resource Coinglass, Bitcoin’s drop below $30,000 caused some of the crypto market liquidations worth more than $1 billion.

Most of these were long positions coming from altcoins. In the 24 hours to the time of writing, BTC accounted for approximately $330 million of its total liquidations, with the rest coming from altcoin tokens.

However, in terms of short-term price targets, the weekend’s CME futures gap, centered at $35,000, gained popularity among traders that day.

“Bitcoin looks like it’s on a mission to mend that CME gap,” popular Twitter account IncomeSharks said†

“The people who sold $34,000 to buy back for $37,000 will end up buying back over $40,000. Happens at the bottom every time. Bears get greedy.”

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