Crypto Market Faces Decline as Bitcoin Hovers Near $65,000 Amid Spike in Liquidations, Market Correction, and Panic Selling
In Brief
Cryptocurrency market drops, with Bitcoin, Ethereum, and Solana witnessing decline in value that have accumulated over recent weeks.
Total cryptocurrency market capitalization is currently valued at $2.6 trillion, reflecting a decrease of 5.85%. However, the trading volume in the market has increased by $197.23 billion, marking a rise of 43.85%. Within this context, numerous cryptocurrencies have seen a decline in values that accumulated over recent weeks.
Bitcoin (BTC) has experienced a significant drop from its all-time-high value of $73,750.07 recorded last week, currently trading at $64,865, reflecting a decrease of nearly 10% over the past seven days, according to data from CoinMarketCap. The downward pressure on Bitcoin’s price is linked to the outflows totalling $643 million from Grayscale Bitcoin Trust (GBTC), as the selling of its shares has reached its highest level on record.
Since the introduction of nine spot Bitcoin exchange-traded funds (ETFs) in the United States earlier this year, there have been significant outflows from GBTC, which recently converted into an ETF due to its comparatively higher fees. This selling activity continues to put pressure on the Bitcoin price.
Crypto Market Faces Decline Amid Liquidation, Market Correction and Panic Selling
Following Bitcoin, most cryptocurrencies continued a downward trend that began yesterday. Three main factors contributed to the decline in the market: liquidation issues, market correction, and panic selling.
According to Coinglass data, significant liquidation issues were observed for cryptocurrencies such as Bitcoin, Ethereum (ETH), and Solana (SOL). Previously, the upward trajectory of Bitcoin had positively influenced the performance of altcoins. However, with Bitcoin’s decline from the $70,000 range, altcoins are also being affected. The market has witnessed liquidations totalling over $666 million, with long traders accounting for $531 million of this amount.
Meanwhile, Bitcoin experienced liquidations totalling $246.66 million, with $195.61 million attributed to long positions and the remaining $47.05 million associated with short positions. Regarding Ethereum, the recent Dencun upgrade has resulted in price liquidation for the cryptocurrency, amounting to a total of $116.07 million. Of this sum, $94.86 million pertains to long-term investors, while $21.21 million is attributed to short-term traders.
Following the successful resurgence of the cryptocurrency market after experiencing three years of low profits, a minor decline is often considered typical and viewed as part of the market’s balancing process. Analysts from cryptocurrency exchange Crypto.com suggest that the market correction, especially before Bitcoin halving, with Bitcoin’s price declining to $65,000, is a healthy move aimed at reducing some of the leverage accumulated in the system.
Additionally, as the cryptocurrency market experiences its strongest phase over a long period, investors are eager to capitalize on the favourable conditions. Several altcoins have reached their all-time high values within the past few days, leading to price fluctuations that may have triggered panic selling. Notably, the market hasn’t dropped entirely and is set to rebound in the near future. Thus, such market conditions present an opportunity for short-term traders to maximize their gains.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
