Bitcoin traders were met with a surprising price drop as the popular cryptocurrency slipped under $98,000 per unit. The sudden slump was largely due to reactions from U.S. Job Openings and Labor Turnover Survey (JOLTS) data which showed an increased hiring activity, signaling a bullish labor market. Top trader and YouTube influencer, Matt Cowart, suggested this could lead to increased job creation.
This price correction coincided with fluctuations in Bitcoin volume. Trading gurus point to a practice called “spoofing” as a key factor – it’s when major shareholders with excess capital manipulate liquidity in the order books. Keith Alan, co-founder of trading resource Material Indicators, argued, “Spoofs are annoying, but they do tend to facilitate some predictable price action for Bitcoin.” This could result in price swings due to liquidity mismatches.
Fellow traders supported this notion pointing to recent liquidations. Monitoring resource CoinGlass noted over $30 million of longs were liquidated in an hour, suggesting a “volatile” retest might be on the horizon. Furthermore, negative predictions about Bitcoin’s price have resurfaced. With prior hopes of invalidating itself from a bearish trend, the hit to Bitcoin’s price may dispel that theory. Yet, trader Cheds Trading assures such price trends are seen as “completely normal.”