Summary
Bitcoin crashed to $8,900 on BitMEX before quickly recovering to $67,000. Speculation suggests a crypto whale caused the crash with massive sell-offs. Economist Peter Schiff warns of a potential significant downturn. Market sentiment shows extreme greed, and US demand for Bitcoin is decreasing. Shift in dynamics indicated by negative Coinbase Premium index and reduced US spot ETF inflows.
Key Points
1. Bitcoin (BTC) plummeted to $8,900 on the BitMEX crypto exchange, but quickly recovered to $67,000 by 23:00 UTC.
2. The sudden decline on BitMEX was attributed to massive sell-offs by a crypto whale, who sold over 977 BTC in increments of 10–50 BTC within two hours.
3. Market sentiment has shifted towards extreme greed, indicated by a Fear and Greed score of 79, and the dynamics that propelled Bitcoin to record highs have shifted, pointing to reduced US demand.