CoinVoice recently learned that Bitfinex Alpha's latest report said that Bitcoin fell back 10% this week, mainly due to a massive sell-off in the spot market and the liquidation of leveraged positions in the broader market. After reaching a local high of $66,587 on September 27, the price of Bitcoin fell sharply, especially after falling below the key $65,200 level, triggering continuous long liquidations, which caused Bitcoin to fall to $60,000.
Indeed, last week’s spot market sell-off was exacerbated by escalating geopolitical tensions between Iran and Israel, which fueled de-risking and led to long liquidations of up to $450 million on October 1. As Bitcoin fell for the first time since early August for four consecutive days, the market saw a healthy correction, with open interest falling from overheated levels above $35 billion to $31.8 billion. The reduction in open interest suggests that market conditions are relatively stable and the risk of sudden price movements is now lower.
On October 4, as labor market data improved, Bitcoin rebounded to $62,500, and briefly rose to $64,027 in trading on October 7. At that time, spot buying enthusiasm rebounded. However, there is no doubt about the short-term market direction now. It's too early to draw conclusions. Several altcoins have also shown significant volatility, with large-cap assets such as XRP and APT trading between 15-20%. With the market still in a passive state, clues to the future direction of BTC and the market as a whole may lie in any positioning during the early trading sessions of the week, especially in the United States. [original link]
