As a seasoned crypto investor with over a decade of experience navigating the rollercoaster ride that is the digital asset market, I have learned to expect the unexpected and remain cautiously optimistic. The recent selloff, with $90 million in positions liquidated within an hour, serves as a stark reminder of the volatility inherent in this space.
On Monday, the cryptocurrency market experienced a significant downturn, with approximately $90 million worth of positions being sold off in just one hour. This selloff caused Bitcoin‘s value to decrease by over 1%, and Ethereum‘s price to drop by almost 2%. The decline was attributed to investors taking profits from their investments.
As a researcher observing the cryptocurrency market, I noticed a slight dip in the prices of top altcoins like Solana (SOL), Binance Coin (BNB), Ripple (XRP), and Cardano (ADA) by around 2-3% following a significant price surge over the past 24 hours. Within an hour, meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB) experienced a more pronounced drop of approximately 6%.
As a researcher delving into the intricacies of the cryptocurrency market, I’ve noticed an overwhelmingly optimistic vibe following President Trump’s re-election. However, certain data points hint at a potential market correction or even a crash.
Will Crypto Market and Bitcoin Crash Soon?
The data from Coinglass shows that within a span of 4 hours, the crypto market experienced a liquidation worth approximately $90 million. Moreover, over the past day, this figure escalated to around $650 million. Interestingly, about $75 million of these funds were tied up in long positions and roughly $15 million from short positions were also liquidated within a few hours, leading to a significant market downturn.
Approximately 217,000 traders experienced being liquidated, and the biggest single liquidation order was processed on the crypto exchange OKX, involving a Bitcoin-Tether swap trade worth around $15,560,000.
According to Bernstein analysts’ predictions, Bitcoin’s price might reach $90,000 by the end of this year. Today, Bitcoin hit an all-time high of $81,858, showing a strong upward trend in the cryptocurrency. However, data from the derivatives market indicates potential worries about a significant selloff that could instigate a dramatic drop in the crypto market.
The current trend indicates a significant decrease in the Bitcoin Implied Volatility (IV), particularly for the At-the-money (ATM) implied volatility, which represents the market’s prediction of potential price fluctuations for Bitcoin. This suggests that options traders are not expecting a substantial price surge in Bitcoin at this moment.
Due to recent developments, the value of significant cryptocurrencies like Ethereum, Solana, XRP, and Dogecoin decreased significantly, causing a chain reaction that led to a widespread selling off in the crypto market.
Furthermore, it’s been reported that Mt. Gox transferred approximately 30,371 Bitcoins, equivalent to around $2.44 billion, into two separate wallets on Monday, according to Arkham Intelligence data. This transaction has sparked some unease among investors, as such large movements of tokens often suggest that an exchange may be planning to liquidate them shortly.
Weakness in Bitcoin, ETH, XRP, DOGE Due to Macro Factors
1) Investors have been let down by China’s recent economic stimulus plan worth 10 trillion yuan, causing a change in market expectations. In the meantime, the financial world is preparing for potential turbulence as the Trump administration is expected to implement significant policy shifts.
This week’s anticipated increases in U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) inflation, alongside fresh jobless claims reports, as well as Fed Chair Jerome Powell’s speech, are influencing the cryptocurrency market. Economists predict these inflation figures to be elevated, potentially stirring up market volatility amidst the recent political changes in the United States.
Nevertheless, many prominent Bitcoin analysts are optimistic about its long-term price growth. Seasoned trader Peter Brandt forecasts a potential complex continuation inverted head-and-shoulder pattern formation that could take Bitcoin’s year-end price to approximately $125,000, and even $300,000 in the long run.
It’s worth mentioning that even though some may be doubtful about this pattern, prominent analysts like Richard W. Schabacker, Robert Edwards, and John Magee have endorsed it.
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2024-11-11 10:58