Trabucco reported that the trigger of the collapse of the value to the level of $ 30 thousand per BTC on May 19 occurred due to the cascading liquidation of long positions, when the price for one coin fell to the level of February. According to the trader, at the time of the fall, Alameda Research was an active buyer of BTC.
Six months before the fall of Bitcoin, investment funds were actively increasing the volume of assets in cryptocurrencies. Then there was a series of several negative events, such as criticism of Bitcoin by Elon Musk and the introduction of a number of new bans on crypto assets in China. Further liquidation of assets by funds further aggravated the situation and accelerated the rate of decline in cryptocurrency quotes.
Thus, on May 19, within 24 hours, holders of cryptocurrencies lost more than $8 billion. In one day, up to 1 million Bybit account holders were subjected to forced liquidation of margin positions, and the most significant share of liquidation in the amount of $67 million occurred on the Huobi exchange. In just a few hours, users withdrew about 37 thousand Bitcoins from the largest crypto exchanges.
The peak of the reverse purchase of Bitcoin by funds and private investors was the value of $ 30 thousand for one BTC.