Bitcoin rebounded above 17,000$ this morning following a slide of as much as 14% to $16,227 on Thursday. The slump pared Bitcoin’s rally this year to about 140%.
— Christophe Barraud🛢 (@C_Barraud) November 27, 2020
Yesterday’s slump was explained by several factors including profit taking and a potential tighter regulation in the U.S. In addition, major cryptocurrency exchange OKEx resumed all withdrawals at 8:00 am UTC on Nov. 26. As a reminder, “While all other operations of the exchange remained unaffected, withdrawals from OKEx were temporarily suspended on Oct. 16 to guarantee the safety of users’ assets, which remains OKEx’s number-one priority at all times.”
Thanks everyone once again for their patience, support and trust in the #OKFam platform.
View details: https://t.co/vwsZmN1Xwi
— OKEx (@OKEx) November 26, 2020
Transaction trackers suggest that outflows hit cryptocurrencies quickly. According to the Block, “OKEx has seen net crypto outflows worth more than $110 million within hours after it reopened asset withdrawals.” The move also forced liquidations on other exchanges.
OKEx has seen over $110m net crypto outflows after withdrawals reopened. https://t.co/zQrfDuu5cm
— The Block (@TheBlock__) November 26, 2020
Hourly liquidations of long positions on #Binance:
— glassnode (@glassnode) November 26, 2020
Looking ahead, people will probably keep an eye on PayPal’s impact on the market and macro factors such as institutional participation, monetary policies and the search for yield (ECB: Dec. 10th; Fed: Dec. 16th).