Bitcoin Drops To $28,500 As Short Traders Dominate

TL;DR

• Bitcoin has lost more than 2% of its value in the last 24 hours and dropped to the $28,300 level.

• Most leveraged traders are short at the moment as Bitcoin and others turn bearish.

Bearish Sentiment Drives Bitcoin Lower

Bitcoin, the world’s leading cryptocurrency by market cap, has lost more than 2% of its value over the last 24 hours. BTC dropped to the $28,300 level on Wednesday before slightly pulling back to currently trade at $28,555 per coin.

The poor performance comes as most traders became bearish about the short-term outlook of the market. This latest downward movement comes a few days after the Commodity and Futures Trading Commission's (CFTC)’s report on commitment of traders (COT) showed leveraged funds are bearish in the CME-listed cash-settled bitcoin futures in the week ended Aug. 8.

Despite yesterday’s poor performance, market analysts continue to be optimistic about the medium-term outlook of Bitcoin and other major cryptocurrencies. Bitcoin is still expected to end the year in a positive manner ahead of next year’s halving event.

Ether, the second-largest cryptocurrency by market cap, has dropped below the $1,800 level after losing nearly 2% of its value in the last 24 hours. 

Shiba Inu is the worst performer amongst the top 20 cryptocurrencies by market cap in the last 24 hours despite recently launching its Shibarium mainnet.