Cryptocurrency Market Sees $197 Million in Liquidations in 24 Hours, Bitcoin, Ethereum, and Bitcoin Cash Decline
The cryptocurrency market has been experiencing a significant downturn, with Coinglass data showing $197 million in liquidations in the last 24 hours. Bitcoin, Ethereum, and Bitcoin Cash have all seen declines over the past week, with Bitcoin down by 7.53%, Ethereum by 12%, and Bitcoin Cash by 16%.
One factor contributing to this decline is the movement of Bitcoin by the Mt Gox exchange, which is preparing to start paying creditors later in July. The exchange moved around $2.7 billion worth of Bitcoin, causing some market instability.
As of July 5, over 230,000 traders across centralized exchanges have been affected by liquidations, with Bitcoin leading the way. Most of the liquidations were long positions, indicating a bearish sentiment in the market.
Analysts predict that Bitcoin will continue to fall, with a potential drop to $44,000 in the near term if it loses key support at $50,000. Ethereum has also seen a significant decline, with positions worth $163.4 million liquidated. The pending approval of ether ETFs did not materialize by July 4, leading to further selling pressure.
Despite the market volatility, Ben Caselin, CMO of VALR, believes that Bitcoin’s “core thesis” remains unchanged. He expects prices to hover around $50,000 in the near term, dismissing short-term price movements as concerns of short-term investors.
The legacy of Mt. Gox continues to loom over the cryptocurrency market, with the now-defunct exchange moving billions of dollars worth of Bitcoin. The recent movement of $2.71 billion worth of Bitcoin has raised questions about the impact of such large transactions on the market.
Overall, the cryptocurrency market is facing a period of uncertainty and volatility, with investors closely watching the movements of major players like Bitcoin, Ethereum, and Bitcoin Cash. The coming weeks will be crucial in determining the direction of the market and the future of these digital assets.
