The cryptocurrency market experienced significant turmoil today, with Bitcoin and Ethereum sliding beneath essential support levels. Bitcoin reached an intraday low of approximately $64,290 after peaking at $67,684, marking a decline of over 4.6%. Meanwhile, Ethereum fell from $1,957 to $1,848, having maintained a support level around $1,914 for nearly a week.
Overall, the market capitalization dropped by 4.31% to $2.23 trillion in just 24 hours. This downturn was primarily fueled by a large-scale liquidation event in Bitcoin derivatives, where long liquidations surged by 934%, totaling $211 million. Over $200 million in crypto longs were liquidated in a single hour as Bitcoin neared the $65,000 mark, highlighting an overleveraged market that exacerbated the downward spiral.
As the liquidation cascade unfolded, it created a feedback loop of falling prices leading to further liquidations, negatively impacting all correlated assets. Altcoins also suffered in the wake of this sell-off, with many top 10 tokens experiencing substantial declines. Solana dropped significantly after losing the critical $80 support, reaching $77.43, representing a near 9% dip. Other notable declines included XRP, Dogecoin, and Bitcoin Cash, each falling over 5% to settle at $1.34, $0.092, and $539.07, respectively.
As a consequence of these movements, the altcoin market cap fell below $940 billion, approaching lows near $910 billion. Following a period of consolidation ranging between $935 billion and $955 billion, the recent drop appears to have disrupted this upward trend, raising concerns of a more profound correction in the market.
Interestingly, while most altcoins faced declines, select tokens managed to defy the trend. Pippin led the gainers with an impressive 34.36% increase, followed by Kite with an 18.30% rise, and Memecore and Toncoin also registering modest gains of over 2%.
Looking ahead, the immediate direction of the market hinges on whether Bitcoin can maintain its position above $65,000 and if the total crypto market cap remains above its critical yearly low of $2.17 trillion. The upcoming release of daily ETF flow data is anticipated to be a pivotal macro catalyst, showcasing institutional interest in the market.
In conclusion, the next few days leading to the month”s end are crucial for determining the future trajectory of the crypto markets and Bitcoin”s price. Investors and traders alike should remain vigilant as the situation unfolds.
