Why Bitcoin’s Price Crash Could Be a Buying Opportunity for Big Players
Bitcoin (BTC) has experienced a significant drop, with its value plunging to $91,000 in the early hours of Monday. The decline follows unfavorable macroeconomic developments, including newly imposed US tariffs. This price movement has left investors and analysts closely scrutinizing the market for signs of a reversal or further downturn. According to a recent analysis by CryptoQuant analyst TraderOasis, Bitcoin’s decline below critical support levels has resulted in increased panic selling. Despite this, the Coinbase premium index indicates that institutional investors are continuing to accumulate BTC rather than offloading their holdings. This contrast between retail-driven selloffs and institutional accumulation suggests that larger players are using the current dip to boost their positions. Bitcoin Market Dynamics And Institutional Activity TraderOasis highlights several key market indicators that shed light on the current dynamics. Open interest—a measure of active trading positions—has dropped significantly, pointing to a wave of forced liquidations as leveraged traders exit their positions. Oasis wrote: A drop in funding rates suggests that market participants are taking short positions (betting on a price decrease) and that bearish sentiment is increasing. Notably, this ongoing pattern described by the analyst hints at a strategic accumulation phase by so-called “whales,” or large-scale investors. Bitcoin spot price and volume on all exchanges. | Source: CryptoQuantOasis mentioned that while retail traders face stop-loss liquidations, these larger entities appear to be absorbing Bitcoin at discounted prices. This accumulation during periods of panic is not uncommon and often precedes a market recovery. Rising Liquidations and Signs of Recovery Another CryptoQuant analyst, Mignolet, echoed these observations, emphasizing the scale of recent long-position liquidations. Bitcoin long liquidations on all exchanges. | Source: CryptoQuantThe current liquidation volume is reportedly the highest since September 2023, with many traders caught off guard by the abrupt price drop. Mignolet compares this event to past market shocks, including the FTX collapse and the COVID-induced crash. The market has been cleaned out “BTC price drop shock has led to the largest liquidation of long positions in recent times… The market has been cleansed, and the open interest trend has finally broken down” – By @mignoletkr Link 👇https://t.co/fYs10fAIo6 pic.twitter.com/27znZMRzqs — CryptoQuant.com (@cryptoquant_com) February 3, 2025 Despite the significant liquidations, there are signs of optimism on the horizon. The Coinbase Premium Gap (CPG) data points to aggressive buying by institutional investors, who are capitalizing on the sudden influx of liquidity. While the market remains volatile, this accumulation activity suggests that larger players anticipate a reversal soon. BTC price is moving sideways on the 2-hour chart. Source: BTC/USDT on TradingView.comFeatured image created with DALL-E, Chart from TradingView Samuel Edyme Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others. Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis. Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics. When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…) Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life. In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps. Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.” PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp. Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.