Ethereum
After Sweeping Bitcoin and Ethereum Liquidations, Analysts Watch for Accumulation Whales
The cryptocurrency market continues its downward spiral this week, after seeing approximately $191 million value of crypto derivatives contracts liquidated in the last 24 hours.
Bitcoin (BTC) is the hardest hit, accounting for half of the total liquidations, or around $103 million. Ethereum (ETH) follows with $33 million in liquidations. This follows the 24-hour countdown which amounts to $330 million yesterday afternoon after Bitcoin fell below $60,000 for the first time since early May.
This sharp increase in liquidations reflects increased market volatility and bearish sentiment.
THE Bitcoin Price fell 2.2% in the last 24 hours to sell at $61,516.48, while the Ethereum Price fell 0.7% to trade at $3,382.27 on Tuesday.
BTC and ETH have lost around 6.5% and 1.4% respectively over the past seven days. But compared to the falls seen yesterday, both coins are on the rise. Bitcoin is 0.2% higher than this time yesterday and Ethereum has rebounded 1.8%.
“What is happening with Bitcoin prices right now is mostly related to the lack of demand growth or momentum from traders, whales and ETFs,” said Julio Moreno, head of research at CryptoQuant. on Twitter.
Another CrypoQuant analyst, who goes by the pseudonym Mignolet, suggested on Twitter that accumulation whales could step in to stop the downtrend and cause a “potential V-shaped rebound.”
The current wave of liquidations has mainly affected long positions, according to CoinGlass. This trend has been observed across various exchanges, suggesting a widespread market reaction to recent negative economic news and data.
In the last 24 hours, 64,829 traders were liquidated, the total liquidations amount to $294.14 million, according to CoinGlass. The largest liquidation order was for a BTCUSDT contract worth just over $15 million.
Bitcoin and Ethereum lead liquidations
The fact that Bitcoin is being hit the hardest by these liquidations highlights the continued volatility of the market’s largest cryptocurrency.
Bitcoin price has been under pressure due to macroeconomic factors, regulatory concerns, and changes in market sentiment. Last week, German authorities sold Bitcoin seized worth approximately $325 million in 48 hours.
“After seeing a drop in the price of BTC, the German government is releasing significant tranches of BTC and estimated that the price of BTC will decline for some time to come,” Robert Quartly-Janeiro, chief strategy officer at crypto. exchange Bitrue, said Decrypt last week.
As traders’ positions are forcibly closed, the ripple effect has put additional pressure on the BTC price, contributing to a lasting bearish market outlook.
Ethereum has also faced significant liquidations, albeit to a lesser extent than Bitcoin.
The $33 million in ETH liquidations since yesterday underscores the challenges facing the second-largest cryptocurrency, which has also faced similar market pressures and investor sentiment.
Edited by Stacy Elliott.