As a seasoned analyst with years of experience navigating the tumultuous seas of the cryptocurrency market, I have seen my fair share of volatility and market crashes. Today’s events, however, have been particularly noteworthy. The recent announcement from the US Federal Reserve has sent shockwaves through the sector, causing a sudden bearish action that saw Bitcoin plummet to under $99,000 before recovering.
Over the last day, it appears that there has been a significant accumulation of sell-offs or liquidations on cryptocurrency trading platforms, as both Bitcoin and other digital coins have experienced a steep decline in value.
Bitcoin & Other Assets Have Witnessed Bearish Action In Last 24 Hours
Yesterday’s events were marked by significant fluctuations in the cryptocurrency market, following the U.S. Federal Reserve’s hint at a more reserved approach regarding potential interest rate reductions, as expressed during their recent Federal Open Market Committee (FOMC) gathering.
In response to recent developments, a panic among Bitcoin investors led to its price plummeting down to nearly $99,000. However, this decline was brief, as the digital currency swiftly rebounded, indicating a partial recovery.
In the graph you see, Bitcoin has surpassed $102,400, indicating it’s dropped less than 3% over the past day. Unfortunately, altcoins haven’t fared as well; most of them are still experiencing significant losses. Even Ethereum, the second-largest digital asset, is down by 5% in this time frame.
It’s no wonder that the turmoil has hit the derivatives sector too, given the widespread drop in market prices.
Crypto Longs Have Just Taken A Massive Beating
Based on information from CoinGlass, a significant number of positions in the cryptocurrency futures market were forcibly closed over the last 24 hours due to the accumulation of substantial losses. These forced closures are known as liquidations and occur when an open contract exceeds a specific percentage loss.
Below is a table that shows the numbers relevant to the latest market flush:
Over the past 24 hours, approximately $790 million worth of cryptocurrency liquidations have been observed. Out of these, about 84% or $662 million were long contracts. This high percentage is primarily due to the overall market experiencing a downturn.
When it comes to the impact of each symbol individually, Bitcoin and Ethereum have consistently ranked first again.
Among other cryptocurrencies, it’s worth noting that XRP, Dogecoin, and Solana have been particularly significant. They individually accounted for approximately $40 million, $29 million, and $23 million in liquidations respectively.
In simpler terms, it’s not unusual for a significant selling event, often referred to as a “squeeze,” to occur in the cryptocurrency market because assets are typically volatile and many traders use leverage. However, the recent sell-off is still remarkable, emphasizing the high level of speculative interest in the market during the bull run.
Despite the pressure, these traders remain undeterred, with the Bitcoin Open Interest maintaining its record level (all-time high or ATH).
Read More
- LUNC PREDICTION. LUNC cryptocurrency
- POL PREDICTION. POL cryptocurrency
- Brent Oil Forecast
- Hunter x Hunter: Togashi Reveals the Rarest Nen Type In The Series
- USD PHP PREDICTION
- EUR CNY PREDICTION
- OKB PREDICTION. OKB cryptocurrency
- EUR ZAR PREDICTION
- ZIG PREDICTION. ZIG cryptocurrency
- Pokemon Is Collaborating With Dua Lipa
2024-12-20 09:41