30s Summary

Bitcoin’s value experienced a near 5% fall even reaching $67,000 due to news events and potential misuse of stablecoin Tether. However, the claims were dismissed by an article in the Wall Street Journal. According to data from Glassnode, the decrease in Bitcoin’s price is due to the open interest (OI) in the system, the biggest drop since August. Some predict that Bitcoin could behave like a risk asset, mirroring gold’s performance. With Bitcoin’s Liquidation-Heatmap showing potential for decrease towards $60,000, crypto tracking tool, CoinGlass, identified bid liquidity placed below the spot price towards $61,500.

Full Article

On October 26, Bitcoin (BTC) was on an unstable path, even nearing $67,000 at one point, all due to news events that led to a near 5% fall in BTC price. When the day ended on October 25, it was seen that the Bitcoin’s lowest recorded numbers were $65,530 on Bitstamp.

This happened while the world was on edge with geopolitical instability and rumors of misuse of the stablecoin Tether (USDT). However, these claims were quickly dismissed in an article in the Wall Street Journal.

Many Bitcoin gurus believe that this plunge in BTC was due to the open interest or OI in the system. One user on a cryptocurrency platform explained how people thought the fall was because of the US government investigating USDT stablecoin use, but that wasn’t the case. According to him, the actual stock market makers trying to flush out high OI was the real reason behind the fall in BTC prices.

This was reflected in data from the on-chain analytics company, Glassnode, which showed a single-day drop in OI on October 25 – the biggest since August. Some in the financial industry even pointed out that Bitcoin seems to be behaving like a risk asset and predict that it may mirror gold in these instances in the future.

Interestingly, the OI levels fell back to when Bitcoin was trading at $59K just minutes after 10,000 BTC open interest were wiped out. Earlier, CoinTelegraph reported a high point of over $40 billion OI as BTC/USD tried to hit $70,000 again.

Moreover, certain analysts have predicted another decrease possibly towards $60,000. This prediction is based on Bitcoin’s Liquidation-Heatmap showing how bull traders attempted to figure out the local bottom throughout the week, but didn’t succeed. Now, if BTC falls under the 65K support level, the next range of support around $60K is exposed.

Cryptocurrency tracking tool, CoinGlass, showed a collection of bid liquidity placed below the spot price towards $61,500. One Bitcoin tracker believes there could be another drop to $60K before investors can start calling for any local-bottoms again.

Source: Cointelegraph