Bitcoin price drops to a two-month low — Did pro traders benefit?
1 min readThe price of Bitcoin fell by 11.5% from Aug. 16 to Aug. 18, resulting in $900 million worth of long positions being liquidated and causing the price to hit a two-month low. Before the drop, many traders expected a breakout in volatility that would push the price upward, but that was obviously not the case. With the substantial liquidations, it’s important to address whether professional traders gained from the price crash.
Bitcoin just saw one of its largest daily liquidations by volume in history.
Starting at 4:30 PM yesterday,
Irrespective of whether those whales and market makers augmented or diminished their positions post the initiation of the crash, data stemming from BTC futures further substantiates the lack of readiness in terms of reducing exposure prior to Aug. 16, be it in futures or margin markets. Consequently, a reasonable assumption can be made that professional traders were taken by surprise and did not profit from the price crash.
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