Bitcoin Dives Below $75K for First Time in a Month as Crypto Liquidations Near $1 Billion
Bitcoin falls below $75K for the first time in a month, leading to nearly $1 billion in liquidations.
Decrypt1 min read
Bitcoin Falls Below $80,000: Coinbase Sellers To Blame?
TL;DR
Bitcoin's price has fallen below $80,000, with recent data indicating a significant drop in the Bitcoin Coinbase Premium Gap. This decline follows a brief recovery above $82,000 earlier in the week.
Key points
- Bitcoin's price fell below $80,000
- Bitcoin Coinbase Premium Gap dropped into the red
- Price briefly sank below $79,000 after recovery
Data shows the Bitcoin Coinbase Premium Gap has plunged into the red zone alongside the latest drop in the BTC spot price below the $80,000 level.
Bitcoin Has Retraced Some Of Its Recent Price Recovery
Bitcoin saw recovery surges above $82,000 on Sunday and Monday, but these spikes failed to set the tone for the week as BTC has since followed a downward trajectory. This decline observed an acceleration on Wednesday, with the cryptocurrency’s price even briefly sinking below $79,000.
Below is a chart that shows the price action that Bitcoin has experienced recently.
The price of the coin has declined over the last few days | Source: BTCUSDT on TradingView
As is visible in the graph, Bitcoin has made some recovery from its low, as its price is now floating around $79,600, but compared to the Sunday high, it remains down about 3.3%.
Now, what was the cause behind the drop? The data of the Coinbase Premium Gap may provide some hints.
BTC Coinbase Premium Gap Has Turned Negative Recently
As pointed out by analyst Maartunn in an X post, the Bitcoin Coinbase Premium Gap has declined recently. This indicator measures the difference between the BTC spot price listed on Coinbase (USD pair) and that on Binance (USDT pair). When the value of the metric is positive, it means BTC is going for a higher rate on Coinbase than on Binance. Such a trend implies users of the former are applying a higher buying pressure (or lower selling pressure) than the latter’s traders.
On the other hand, the indicator having a sub-zero value suggests Binance investors may be applying a higher buying pressure as BTC is trading at a higher price on the platform.
Q&A
What caused Bitcoin to drop below $80,000?
The recent decline in Bitcoin's price is linked to the Bitcoin Coinbase Premium Gap plunging into the red zone.
How low did Bitcoin's price go recently?
Bitcoin's price briefly sank below $79,000 during its recent downward trajectory.
What was Bitcoin's price before it fell below $80,000?
Before the decline, Bitcoin had surged above $82,000 on Sunday and Monday.
