Bitcoin Price Dips Below $83K as 129,197 Traders Get Wiped out

Gold’s 2.9-Sigma Day

Rising yields hit precious metals as well, with Gold falling 3.4% on the day, a move The Kobeissi Letter called “one of the rarest single-day declines of the last two decades.” Since 2006, gold’s average daily change has been +0.05% with a standard deviation of 1.19%, which puts Monday’s drop about 2.9 standard deviations below normal.

Spot gold sank to $4,148.69 an ounce, its lowest level since Aug. 5, while silver slid 4.31% to $61.53. Furthermore, Bitcoin.com News reported yesterday that gold and silver shed $550 billion in hours as bitcoin dipped to $82,780, but the bleeding did not stop there.

The Leverage Flush

Crypto walked into today carrying plenty of borrowed money, as bitcoin had just logged its best weekly close since January, and spot bitcoin exchange-traded funds (ETFs) pulled in $2.39 billion last week, their strongest week since October last year.

In sum, optimism was high, and so was leverage. But then the floor gave way as $BTC fell below $83,000 in Asian trading on Sept. 29, subsequently recovering to near the $83,250 mark.

Altcoins such as QNT, ONDO and NEAR experienced drops between 13% and 20%, all while roughly $500 million in crypto positions were liquidated over 24 hours, hitting 129,197 traders.

Lastly, derivatives data showed bitcoin futures open interest, the total value of outstanding contracts, down to 650,000 $BTC, its lowest since March. Funding rates turned negative across major exchanges as well (with 53.1% of taker volume sitting on the short side).

That said, not everyone seems to be heading for the exit, with Binance seeing 13,800 $BTC exit the exchange in a single day, possibly to a long-term, cold storage medium.