There was quite a bit of confusion in the general crypto markets yesterday because of a large sell-off. On derivatives exchange platform BitMEX, over $190 million was completely liquidated.
Market data platform Skew announced that in total, there were many buy orders worth about $6.1 million. However, sell orders comprised a whopping $196 million. Skew says it was a mix of both long and short orders.
The sell orders were probably caused by a serious panic that has gripped both the crypto and traditional equities markets recently, especially as the coronavirus worsened. The price of Bitcoin also crashed. At the moment, it’s trading at $8,850.
Bitcoin is expected to stand the test of uncertainty because it has been considered for a long time by proponents, as a safe haven. Recently, in the heat of the tension between the U.S and Iran earlier this year, both Bitcoin and gold which are thought to be trusted safe-haven assets, spiked.
However, the current coronavirus epidemic and Bitcoin’s reaction to it seems to be denting that safe-haven status.
Yesterday, Kryptomoney reported that it is possible that the current plunge is simply a correction to the gains Bitcoin has pulled in since 2020 began. Regardless, the market waits to see if support levels below $8,800 will be activated if Bitcoin continues to drop.
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