Post-Liquidation Bitcoin and Ethereum: Analysts on the Lookout for Whale Activity
Crypto News- The cryptocurrency market continues to struggle this week, with approximately $191 million worth of crypto derivatives contracts liquidated in the last 24 hours.
Bitcoin Takes the Biggest Hit
Bitcoin (BTC) has been the most affected, accounting for half of the total liquidations—about $103 million. Ethereum (ETH) follows with $33 million in liquidations. This spike follows yesterday’s 24-hour tally reaching $330 million after Bitcoin fell below $60,000 for the first time since early May.
Reflecting Market Volatility and Bearish Sentiment
This sharp rise in liquidations highlights the heightened market volatility and prevailing bearish sentiment. Over the past 24 hours, Bitcoin’s price dipped by 2.2%, settling at $61,516.48, while Ethereum’s price decreased by 0.7%, trading at $3,382.27 on Tuesday.
Weekly Performance of BTC and ETH
Over the last seven days, BTC and ETH have lost about 6.5% and 1.4%, respectively. However, compared to the significant drops yesterday, both coins are showing signs of recovery. Bitcoin is up by 0.2% from this time yesterday, and Ethereum has rebounded by 1.8%. According to Julio Moreno, head of research at CryptoQuant, “What’s happening right now with Bitcoin prices is mostly related to a lack of demand growth or momentum from traders, whales, ETFs.”
Potential Whale Accumulation
Another CryptoQuant analyst, known as Mignolet, suggested on Twitter that accumulation whales might step in to halt the bearish trend, potentially leading to a “V-shaped rebound.”
Long Positions Hit Hard
The current wave of liquidations has primarily impacted long positions, according to CoinGlass. This trend has been observed across various exchanges, indicating a widespread market reaction to recent negative news and economic data. In the past 24 hours, 64,829 traders were liquidated, with total liquidations amounting to $294.14 million. The largest liquidation order was on a BTCUSDT contract, valued at just over $15 million.
Bitcoin and Ethereum Lead Liquidations
Bitcoin’s significant impact in these liquidations underscores the ongoing volatility in the market’s largest cryptocurrency. The price pressure on Bitcoin is due to macroeconomic factors, regulatory concerns, and shifts in market sentiment. Last week, German authorities sold off seized Bitcoin worth about $325 million within 48 hours.
Seeing the BTC price dip, the German government is releasing significant tranches of BTC, expecting the price to soften for a while
obert Quartly-Janeiro
Ethereum Faces Challenges Too
While Ethereum has faced significant liquidations, it has been to a lesser extent than Bitcoin. The $33 million in ETH liquidations since yesterday highlights the challenges faced by the second-largest cryptocurrency, which is also dealing with similar market pressures and investor sentiment.
FAQ on Recent Crypto Market Liquidations
What caused the recent $191 million in crypto liquidations?
The recent $191 million in crypto liquidations was primarily caused by heightened market volatility and bearish sentiment. A significant drop in Bitcoin’s price below $60,000 triggered a wave of liquidations across various exchanges.
Why was Bitcoin the most affected cryptocurrency?
Bitcoin was the most affected because it is the largest cryptocurrency by market cap, and it often leads market trends. Additionally, macroeconomic factors, regulatory concerns, and shifts in market sentiment have put extra pressure on Bitcoin’s price.
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