Bitcoin Price Falls to $8.4K: CME Futures Gap Closed, Nearly $1 Billion Liquidated
Bitcoin’s price fell to $8,400 in Asian trading temporarily. The drop occurred due to the closure of a gap in the CME futures, triggering a wave of liquidations on the crypto markets worth nearly $1 billion.
Bitcoin price drops dramatically to $8,400
In a surprising move, Bitcoin’s price dipped dramatically to $8,400 on Wednesday. The drop happened during Asian trading hours on the Binance crypto exchange. This extraordinary low represented a decline of about 87 percent from its previous price level, causing shock and confusion among market participants.
CME gap closed – $1 billion liquidated
This substantial drop in Bitcoin’s price can be linked to the gap in the CME futures at the $8,400 mark. The market quickly adjusted to close this gap, which in turn generated a chain reaction in the form of liquidations. Almost $1 billion was liquidated, creating a cascade effect that impacted several investors and trading platforms.
Flash crash or manipulation?
The crypto community is now debating whether this price drop was a flash crash or the result of market manipulation. Flash crashes are brief plunges in the market that are typically quickly corrected. However, the fact that the price level was reached at exactly the CME gap makes some experts speculate about intentional manipulation by larger whales.
Market recovery expected soon
Despite the panic and losses incurred from the sudden drop, many analysts remain confident in Bitcoin’s resilience. Historically, Bitcoin has weathered such volatility, subsequently leading to rapid recovery. Investors are now eagerly awaiting the market’s response as they try to evaluate whether this incident provides an opportunity to buy at lower levels.
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