Binance Coin is the latest coin in the list of the digital assets that have seen massive jumps ok the back of yesterday’s dip. The dip yesterday was led by a not so surprising force, Bitcoin as major altcoins saw red to close out the day. The highest decline recorded were still from the first and second digital asset, Bitcoin and Ethereum.
While Ethereum saw a big loss that placed it to sell at $1,900 from the $2,400 it sold in the previous days before that, Bitcoin, which just broke clear off the $60,000 price mark, was forced back under it to sell at $52,000. Even though the market has stabilized since the start of the day, major coins have reported massive numbers in profits.
Analysts blame the futures market for the drop
According to analysts, one of the reasons why the digital asset market saw red was due to the activities in the futures market. Most of them believed that that vast amount of activities in the sector led to the market being overheated, hence the drop in the price of digital assets.
To put the total event in numbers, it was reported that positions worth about $10 billion were liquidated on that day as Bitcoin chipped in its bit by being responsible for half of the whole worth.
The analysts mentioned that since the drop had technical backing, it was caused by the liquidation of positions. The futures market was not spared out of the blame game as experts positioned that most of the digital assets in the market sold way lower than the price they went for in the spot market.
Analyst Adam Cochran mentioned that he was very surprised when he saw that about $63 million worth of positions had been liquidated, a move that killed every hope that the market had for a comeback.
Traders bought the dip after the market-wide slump
While the market is now coming back from the tragedy that befell the entire market yesterday, some analysts have pointed out that assets with strong fundamentals would be the ones to record strong jumps.
While it looked like Bitcoin and Ethereum were the leaders in terms of the recovery, with the assets seeing a 15% and 12% jump, BNB has upset the odds. In the last 24 hours, the digital asset has outpaced both leading digital assets to record the biggest jump.
Even though things have changed slightly, the third digital asset is still up about 6%, sitting pretty at a price region around $493. According to a trader, one thing that might have helped the market was the traders planning to buy the dip.
Buying the dip is a phenomenon that is popular with traders in the digital asset market as most of them would want to buy the asset when the price is very low, only to sell when they have accrued enough profits.