📉 The Sudden Drop of Bitcoin: What Happened?

In the past hours, Bitcoin (BTC) experienced a sharp drop, bringing it close to 110,700$ after being stable above $114,000. This rapid movement confused the market and raised questions among investors and traders.

🔎 Main Reasons Behind the Drop:

1️⃣ Massive sell-off by a large "whale": Approximately 24,000 BTC were liquidated in one go (worth over $2.7 billion), causing a shock in the market and leading to what resembles a "flash crash".

2️⃣ Liquidation of leveraged positions: Over $235 million in long positions were liquidated, deepening the severity of the drop.

3️⃣ Profit-taking after the recent rise: Many traders preferred to secure their profits at high levels.

4️⃣ Shift in liquidity towards Ethereum (ETH): A clear movement of capital from Bitcoin to altcoins was observed, especially after Ether soared to record levels.

5️⃣ Outflows from ETF funds: Consecutive withdrawals from Bitcoin exchange-traded funds pressured institutional demand.

⚡️ Summary:

The drop was not due to a single piece of news, but rather the result of the interaction of several factors: whale movements + leveraged liquidations + profit-taking + shifts in market appetite.

This illustrates that the market is still very sensitive to the movements of major players, especially with liquidity dropping over the weekend.