$BNB
The strength of this drop clearly indicates that it is caused by trading platforms rather than individual traders or investors. The platform initiated this drop to liquidate massive amounts of long positions in the market. As we all know, futures trading does not involve real money; it is essentially numbers we trade with using leverage. If you profit, you earn from the platform's own funds, and if you lose, the platform gains. This is not exclusive to Binance but applies to all trading platforms, including forex platforms. The funds used in leveraged trading in crypto are not real; they are just numbers.
This is why you often see that the futures chart does not match the regular spot chart. Once traders confirmed that the market was on an upward trend, massive long positions worth billions began to accumulate. This would result in losses for trading platforms, which, at the same time, were tempted to liquidate these billions.
So, what did they do?
They started injecting and selling large quantities of the assets they hold in the market to push the market down, creating panic and triggering widespread selling. Consequently, the futures market plummets sharply, long positions close with losses, and these funds return to the platforms' accounts. This is a strategy platforms have repeatedly used before.
What confirms your theory, Mr. Mamdouh?
Look at the length of the first hourly candle of the Bitcoin drop. Observe its length, the volume of sales, and the amount of money injected into the market.
What could make traders coordinate so precisely to sell such large quantities simultaneously?
Yes, it is the platforms.
