Media: Institutions cut Bitcoin positions by at least $500 million

An anonymous trading firm cut Bitcoin positions by $500 million on December 4, triggering ‘aggressive’ liquidations in the derivatives market totaling $1.3 billion in the $42,000 to $51,000 range, The Block reports.

Open interest fell from $21.6 billion to $16.7 billion in under an hour, according to the report.

‘Everyone had a good year. Those who came from traditional finance are watching the macro backdrop, which has started to look shakier,’ said Aiya Kantorovich, executive director of the FalconX Bitcoin exchange.

The executive said that long-term, horizon-focused buying interest remains.

On December 4, Bitcoin’s price briefly fell to $42,000. Following Bitcoin, almost all top-10 digital assets by market capitalisation fell into the red.

At the time of writing, the digital gold is trading at $48,540. Over the last 24 hours BTC fell 1.8%, over the week — 15%, according to CoinGecko.

Earlier, investor-billionaire Louis Navellier warned of Bitcoin dropping to $10,000. In his words, the chart for the leading cryptocurrency is showing a growing signal of a ‘double top’ formation, the realization of which could occur as the Fed’s monetary policy normalizes.

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