Bitcoin experienced a strong sell-off yesterday, as the price plummeted all the way down to $8,000, marking a new three-month low. Although the reasons for the dip are still unclear, analysis of the trading volumes in the derivative and spot markets can give us some insight.
Source: CoinAPI, The Block
Most of the bitcoin price drop occurred within a one-hour time span, between 6:45 p.m. UTC and 7:45 p.m. UTC, where the price decreased from about $9,300 to $8,000 (a 14% decline). Looking at Bitmex and Deribit, we can see that the hourly trading volume for BTC perpetual contracts rose substantially around this time.
Join Genesis now and continue reading, Taking a deeper look into yesterday’s bitcoin price drop!