Bitcoin’s price has experienced a significant drop, falling to around $53,000 and losing over $17,000 since last Monday. This dramatic decline marks one of the worst weekly performances in Bitcoin’s history.

Massive Liquidations

In the last 24 hours alone, the market has seen a staggering $840 million worth of leveraged positions liquidated. The rapid and substantial price decrease has caught many investors off guard and has sent shockwaves through the cryptocurrency community.

Possible Reasons for the Crash

Earlier this week, CryptoPotato highlighted three potential factors contributing to the market downturn:

1. Weak US Economy: Economic indicators in the United States have shown signs of weakness, which has created uncertainty and fear among investors.
2. Federal Reserve’s Fiscal Policy: Uncertainty about the fiscal policies of the US Federal Reserve has added to market anxieties.
3. Outflows from Exchange-Traded Funds (ETFs): Significant funds have been flowing out of cryptocurrency ETFs, reducing the demand for digital assets.

Arthur Hayes’ Speculation

Arthur Hayes, the former CEO and co-founder of one of the largest derivatives trading platforms in the cryptocurrency industry, has added his voice to the discussion with a speculative tweet. Hayes suggested that a major player in the traditional finance (TradFi) sector might be behind the sell-off.

“My TradFi birdies are telling me somebody big got smoked, and is dumping all #crypto. No idea if this is true, I won’t name names, but let the fam know if you are hearing the same?”

During the weekend, Jump Crypto – the cryptocurrency arm of Jump Trading – moved hundreds of millions of dollars worth of various coins. One notable transaction included a $46 million transfer of Ethereum (ETH). These large movements have led many to believe that Jump Crypto might be liquidating its holdings, further contributing to the market crash.

While the exact reason for Bitcoin’s dramatic price drop remains uncertain, a combination of economic factors and significant sell-offs by major players appear to be key contributors. The market will likely continue to react as more information becomes available, and investors remain vigilant during these turbulent times.