• Bitcoin prices have been trading below the Short-Term Holder (STH) cost basis for four consecutive days, mirroring a similar situation in 2019 where prices plummeted from $12,500 to $6,500 and remained under the STH cost basis until January 2020.
• CME Bitcoin futures spiked to an unprecedented 23% amid overall market de-leveraging.
• Bitcoin pricing on Binance and Coinbase showed unexpected divergence as BNB experienced a sharp drop.
Bitcoin Prices Trading Below Cost Basis
Bitcoin is currently trading below the Short-Term Holder (STH) cost basis of $28,680 for the fourth consecutive day. This pattern mirrors a similar situation in 2019 when bitcoin prices plummeted from $12,500 to $6,500 and stayed under this cost basis until January 2020.
CME Bitcoin Futures Spike
In addition to bitcoin’s current position under the STH cost basis, CME Bitcoin futures spiked to an unprecedented 23%, further contributing to overall market de-leveraging.
Unexpected Price Divergence
Further complicating matters is the unexpected divergence in bitcoin pricing between Binance and Coinbase as BNB experienced a sharp drop.
Millions Potentially at Stake
With millions potentially at stake due to market pressure on short-term holders, it remains unclear what direction bitcoin will take in the coming days.
East Asian Economic Headwinds Intensify Turbulence
East Asian economic headwinds further complicate matters by intensifying existing turbulence in bitcoin markets. As such, investors should remain wary of potential impacts these could have on their investments going forward.