1.26M Bitcoin Under Threat: Is Your Portfolio Green?

• Over 780,000 Bitcoin investors recently bought BTC at a spot price of $26,800.
• As a result of this buying pressure and the SEC’s lawsuit against Binance, the price of BTC dropped by 5.8%, resulting in 1.26 million coins being in losses.
• Traders attempted to take advantage of the situation by increasing their short positions, leading to a long/short ratio below one and more negative sentiment in the market.

Overview

This article discusses how 1.26 million Bitcoin are under threat due to recent market conditions and the related lawsuits from the US Security and Exchange Commission (SEC). It explains how buying BTC at its press time price could be risky, as well as why there is an increase in short positions despite the decrease in long liquidations.

Investors Buying BTC

Glassnode reported that about 780,000 Bitcoin [BTC] investors filled their buy orders at a spot price of $26,800. However, this action seemed to be wrong as BTC declined by another 5.8%. This resulted in 1.26 million coins being in losses altogether.

SEC’s Lawsuit Against Binance

The recent drop was caused by crises facing Binance after SEC released a statement that it was suing them on June 5th. After this announcement billions of dollars were withdrawn from Binance’s reserves resulting in selling pressure that affected the king coin’s price significantly.

Traders Taking Advantage Of The Situation

Traders attempted to take advantage of this situation by increasing their short positions thus causing the long/short ratio to become 0.84 moments after the public got wind of these problems with the regulators which meant more shorts than longs creating more negative sentiment in the market overall.

Conclusion

With current market conditions and lawsuits from regulators such as SEC threatening 1.26 million coins with losses it is important for investors to consider buying strategies carefully or employ DCA system for winning over markets in long term investments while avoiding risks associated with trading during such times..