The cryptocurrency market started the new week with declines. While Bitcoin was trading at levels close to 44 thousand dollars, it retreated to 40 thousand 400 dollars. Other cryptocurrencies also followed Bitcoin. Ether, the second largest cryptocurrency by market value, dropped to $2,161. BNB dropped to 228 and XRP dropped to $0.60. On the other hand, the total market value of cryptocurrencies, which was at the level of 1 trillion 640 billion dollars, decreased to 1 trillion 560 billion dollars with the decreases.
This decline, which came as we entered a critical week for the markets, attracted attention. US inflation data will be released on Tuesday. The Fed's interest rate decision will be announced on Wednesday. Stating that leverage has recently increased greatly in the market, Richard Galvin, co-founder of the asset management company Digital Asset Capital Management, said: "The current decline seems to be due to the reduction of leveraged positions rather than being caused by any news flow." he commented.
A $360 million position was liquidated in 12 hours
The withdrawal caused losses to more than 100 thousand users who made leveraged transactions. According to CoinGlass data, over $360 million positions were closed with a loss in the last 12 hours. 321 million of these were bullish positions.
The price gap in CME came to the fore
The decline in Bitcoin also brought to the fore the price gap (GAP) in the Chicago Stock Exchange (CME). As we reported recently, analyst Willy Woo drew attention to the decline in the short term and underlined the price gap in CME at the level of 39 thousand 700 dollars.
The price gap refers to the price difference between Friday's close and Monday's open in Bitcoin-based futures contracts on CME. As it is known, the CME exchange is closed on weekends, but Bitcoin is open for trading 24 hours a day, 7 days a week. This creates a large gap between the opening and closing price on the CME when the CME is closed and especially when a large price movement occurs. To date, 28 of the 30 price gaps in daily candles have subsequently closed. This shows that Bitcoin tends to return to the formed price gaps.
Despite today's decline, the price gap has not yet closed. Speaking to Bloomberg, IG Australia market analyst Tony Sycamore predicts that declines towards the $40,000 to $37,500 range will be met by buyers and that this region will be an important support level.
