It was reported that some institutions bought Bitcoin during the big market drop yesterday.
On Wednesday afternoon, Bitcoin experienced a massive retracement of over 20%. The leading currency hit $ 30,000, breaking many key supports during the decline. The price of Bitcoin then recovered to over $ 40,000 again, experiencing a huge recovery within a few hours.
During the drop in question, cryptocurrency trading platforms stated that some hedge funds and asset management companies bought Bitcoin. Aya Kantorovich, head of corporate sales of the cryptocurrency trading platform FalconX, said:
Genesis Global Trading, another cryptocurrency trading platform, similarly said that large funds started buying at the level of $ 35,000.
The Cause of the Fall
According to the company, the decrease was due to liquidations on derivatives platforms. These liquidations, which caused a big drop in the bitcoin price, were quickly bought. On the other hand, it was reported that some derivative traders taking short gamma positions intensely also increased sales in the market.