The crypto market has continued to face a series of repeated corrections with a mild short-term rebound. The frequent market downturn has seen Bitcoin’s sell volume surge significantly, according to data from crypto analytics platform CryptoQuant.
After the recent price breakout that saw Bitcoin trade near the $70,000 mark, the market is back to the red territory and Bitcoin slid back to $63,000.
While the crypto market is currently experiencing another wave of panic selling, the volatility this time is attributable to the rising tensions between the United States and Iran.
Bitcoin records $1.8 billion in sell volume
On Saturday, Feb. 28, the platform revealed that Bitcoin recorded about $1.8 billion in sell volume within just one hour. This massive sell activity flooded the derivatives market as traders rushed to offload positions amid the sudden market correction.
Notably, the sudden spike reflected aggressive market sell orders hitting order books, signaling growing fears as traders begin to take caution.
While the market saw positive momentum days earlier, the shift in sentiment was swift. The platform shared charts revealing that Bitcoin’s key derivatives pressure index dropped sharply from 30% to 18%. This shows how quickly the mood turned strongly bearish.
The sudden flip is largely attributed to the macroeconomic pressure caused by the recent U.S. and Iran attack.
Bitcoin sellers dominate market
Following the sudden price flip, the data shows that sellers have dominated the market, and traders appeared to be more focused on limiting exposure than holding through uncertainty.
Nonetheless, market watchers have retained optimism as they believe that extreme one-sided positioning can sometimes create the conditions for a rebound.
As selling pressure continues to mount across the Bitcoin derivatives market, the Bitcoin open interest has been barely neutral over the last 24 hours.
