Bitcoin got hit on the weekend and bitmex lost 100 mil. USD of longs
At the weekend, the BTC tested a $ 10,500 threshold where the resistance zone begins. On Saturday we experienced a slump, which was probably caused by one big deal, because it was a slump in a few minutes. It is speculated that this was a big whale sale on Bitfinex, but this cannot be confirmed or refuted.
In the picture above you can see a minute graph. The entire slump lasted 9 minutes and most of the movement fit within 4 minutes. This still tells us that Bitcoin is a small market that is easily influenced. After falling to $ 9,737, the price returned to the $ 10,000 threshold for Bitcoin. This would correspond to the narrative that under current conditions, so-called dips are bought very quickly.
However, the strong slump had another effect, namely the liquidation of 100 million BTC long on Bitmex. The fall also affected the altcoins. On Bitmex, it was destroyed in 3.6 million ETHs and 8.4 million XRPs. High lever exchanges such as Bitmex are extremely risky for ordinary investors and are only for experienced traders.
Bitcoin as hot goods in South America
South America is known for its fragile economy. Although the South American region is developing rapidly, local governments often stand on very shaky foundations and their monetary policy often ends disastrously. We could see this on the example of Venezuela’s collapsing economy. Argentina’s economy has also been hit hard, with inflation rising to 50%.
Looking at selected countries in South America, we can see a relatively strong trend that shows investors’ interest in BTC. Coindance data shows volumes in local currencies. So we can see a strong interest in BTC in Argentina, Chile, Peru or Colombia. The following figure shows the upward trend in these specific countries.
Demand for BTC will be greater in countries suffering from an unstable, economic situation. Bitcoin offers an alternative to uncertain, financial terms. That is why it is often speculated that South America may have a leading position in adopting cryptocurrencies.
Novogratz: Great years are waiting for Bitcoin
Mike Novogratz, a well-known celebrity in cryptospace, said in an interview with CNBC that Bitcoin could reach $ 20,000, he said, in May. His prediction is closely related to halving, which should come in late April or early May.
“Bitcoin has existed for eleven years and is on its way to becoming a digital alternative to gold,” Novogratz said in an interview. In his words, Bitcoin is on its way to the new ATH. “Bitcoin will be at ATH by the end of the year. This means that by the end of 2020 it will cost more than $ 20,000. We can get there already during the halving season, which will come in May, ”Novogratz added.
The interest of mainstream media usually marks a good time for the Bitcoin prize. The more BTC is talked about, the more new investors are coming. It was Novogratz, who said Bitcoin was a good brand and people were interested in it.