Days after Bitcoin (BTC) broke the psychological price of $ 50,000 and rose to the $ 52,000 level. The leading cryptocurrency experienced a significant pullback that caused a loss of $ 10,000.
BTC is down 10.83% in the past 24 hours, reaching $ 45,834 during intraday trading CoinMarketCap.
As a result, the perpetual funding rate for Bitcoin futures turned negative. On-chain data provider Dilute proof explained:
“Funding has turned negative, which shows that there is currently a tendency to short Bitcoin. Now that over-indebted long positions have been flushed out of the market, could this be fertile ground for some small recovery? Or is that a little too early? “
The negative funding rate was observed just hours after the BTC Perpetual Swaps open interest hit its highest level since mid-April, after surpassing $ 16 billion.
Cryptanalysis company Glassnode accepted:
“Over $ 4 billion in Bitcoin Open Interest was mined during this sell-off. This is the most significant leverage flush since the sell-off in mid-May. “
Long-term owners have a firm grip on their investment
According to the long-term Bitcoin holder’s net position change indicator, these investors are still firmly in control of their investments despite the recent decline in the market.
“While overexposed futures traders were liquidated, more risk-averse Hodlers bought the dip, which led to a drop in market balances from -4.6k BTC to a> 3y low.”
The BTC market slump came shortly after the leading cryptocurrency officially became legal tender in El Salvador. Additionally, the nation’s president, Nayib Bukele, confirmed the purchase of 150 bitcoin amid the crypto market crash.
Meanwhile, McDonald’s, a large US fast food company, is accepting Bitcoin as a payment option in El Salvador on the Lightning Network powered by OpenNode.
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