Why Did Bitcoin’s Price Slump by $2K in 20 Minutes?

Was the US government behind this major liquidation event? Although BTC was halted at $87,000 once again at the start of the business week, it still managed to hold relatively stable at over $85,600 before the bears took complete control for less than half an hour earlier this morning and drove it south by $2,000. Naturally, such a violent move spiked the liquidations, as the total value of wrecked positions rocketed to over $550 million on a daily scale. $430 million came in the past 4 hours alone, and almost all were from longs. Interestingly, ETH longs are responsible for the lion’s share as the altcoin’s price tumbled by roughly 4%, going below $2,600. Other alts, such as XRP, HYPE, DOGE, and ADA, were hit even harder, with losses of up to 6% on a 24-hour scale. More than 100,000 traders were wiped-out in the past day, with the single-largest liquidation order taking place on Binance. It was worth a whopping $26 million and involved the ETH/USDC pair, according to CoinGlass. A couple of reasons pop up in the past several hours that could have resulted in this major leg down. At first, Lookonchain reported that the US government has moved a portion of the crypto it holds. In tot...