More Than 62,000 Crypto Traders Liquidated as Bitcoin, Ethereum Take Tumble

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Bit­coin (BTC) tum­bled overnight, with the lead­ing cryp­tocur­ren­cy drop­ping to lev­els as low as $19,621, accord­ing to data from Coin­Mar­ket­Cap.

Last week was a bull­ish one for cryp­tocur­ren­cies, as most end­ed up in the green ter­ri­to­ry. BTC had also man­aged to stay above its $20,000 sup­port after weeks of waf­fling above and below this price.

Bit­coin has this morn­ing, how­ev­er, shed 3.72% over the past 24 hours and is trad­ing close­ly near its sev­en-day low of $19,341.23, indi­cates Coin­Mar­ket­Cap.

The mar­ket cap­i­tal­iza­tion of the largest cryp­tocur­ren­cy, Bit­coin, has crashed from a whop­ping $1.27 tril­lion in Novem­ber 2021 to under $377 bil­lion today.

As for Ethereum (ETH), the sec­ond-largest cryp­tocur­ren­cy with a mar­ket cap­i­tal­iza­tion of $129 bil­lion, it too has slipped to around $1,068, a 6.7% decline over the past 24 hours.

This marks a drop of 78.14% from its all-time high of $4,891.70.

Amid the bear­ish price action, more than 62,000 traders were liq­ui­dat­ed in the cryp­to mar­ket, sug­gests data from Coin­Glass. Over $180 mil­lion has been liq­ui­dat­ed over the same period.

Ethereum leads liq­ui­da­tions with near­ly $62 mil­lion liq­ui­dat­ed in the past 24 hours, fol­lowed by Bit­coin with $59.95 mil­lion and Solana with $3.42 mil­lion over the same period.

Bitcoin, Ethereum face host of risks

The pri­ma­ry dri­vers behind the bear­ish action are the plum­met­ing cryp­to trad­ing vol­umes, min­er sell­ing pres­sure, and high expec­ta­tion of anoth­er rate hike from the Fed­er­al Reserve.

The total trad­ing vol­ume of cryp­tocur­ren­cies has dropped to just above $50 bil­lion, a 86% decline from its all-time high of near­ly $367.6 bil­lion record­ed on May 20, 2021, accord­ing to ana­lyt­ics data from Coin­Mar­ket­Cap.

The long-term bear­ish move­ment in the price of Bit­coin has also forced many min­ers to offload their hold­ings to cov­er oper­a­tional costs.

“With the loss of the $30k price lev­el, min­ers and long-term hold­ers (LTHs) have come under stress,” read a recent report pub­lished by Glassnode. Long-term hold­ers refer to Bit­coin hold­ers who don’t sell their hold­ings for months to years.

Cur­rent­ly, the long-term hold­ers of Bit­coin are fac­ing loss­es of up to 33%.

Final­ly, cryp­tocur­ren­cies flipped bear­ish after the 75-basis point hike announced by the U.S Fed last month. The Fed is again meet­ing on July 26, with many expect­ing anoth­er 75-basis point hike. 

This meet­ing may sig­nal even more pain for all risk-on assets.

Dis­claimer

The views and opin­ions expressed by the author are for infor­ma­tion­al pur­pos­es only and do not con­sti­tute finan­cial, invest­ment, or oth­er advice.

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