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Bitcoin lost $1K in hours as Bybit exit Canada

Bitcoin posted a notable drop after trading at $28,000 on Tuesday as Bybit pulled out of Canada.

Bitcoin is trading at $27,000 at the time of writing, with a 24-hour trading volume of $15 billion and a market valuation of $525 billion. Bitcoin has fallen 2.53% over the past 24 hours.

In the last 24 hours, he has had 34,796 traders liquidated, bringing his total liquidation to $79.41 million. The single largest liquidation order was OKX – ETH-USD-SWAP, worth $2 million

Consequently, Bybit announced that it will exit the Canadian market as early as May 31, following recent regulatory developments in the country, and several other exchanges have also exited the country.

The exchange said in a blog post:

  • “Bybit has always aimed to comply with all relevant Canadian rules and regulations” 
  • “Given recent regulatory developments, Bybit has made the difficult but necessary decision to suspend the provision of our products and services.”

New account openings will not be possible from May 31, but existing customers will have to make new deposits and sign new contracts by July 31, and may also withdraw or reduce their positions after trading closes, the company said.

Bybit, which recently opened its global headquarters in Dubai, joins several other cryptocurrency exchanges that have suspended operations in Canada. Due to Canada’s tough regulatory environment that was announced, new guidance for cryptocurrency businesses that mandates the use of a trading platform for purchasing Canadian Securities Administrator (CSA) endorsements was made available inclusive of passing various due diligence checks.

Important points to note

Meanwhile, Bitcoin’s volatility has fallen to historically low levels due to macro uncertainty, exits, and low market liquidity. However, data from on-chain and options markets show volatility to rise in June.

According to the Bitcoin Volatility Index, which measures the daily fluctuations of the Bitcoin price, the 30-day volatility of the Bitcoin price is 1.52%, which is less than half the annual average in Bitcoin’s history which has been usually over 4%.

According to Glassnode, expecting volatility is a “logical conclusion” because low volatility levels have been observed in only 19.3% of Bitcoin price history.

The latest weekly update by the on-chain analytics firm shows that Glassnode’s Bitcoin monthly realized volatility indicator has fallen below the lower end of the historical Bollinger Bands, indicating a volatility spike is imminent.

Bitcoin on-chain transfers on cryptocurrency exchanges have fallen to historically low levels.

According to the report, the price has been hovering around the short-term bearer bias, suggesting it is a “profit-and-loss balanced position for new investors” who bought the coin during and after the 2021-2022 bull cycle showing.

Currently, 50% of new investors are making a profit, while the rest are making a loss, but while short-term holders have reached equilibrium levels, analysts say long-term holders have seen some movement in the recent correction, supporting volatility.

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