Crypto Market Sees Over $150 Million Liquidations as Bitcoin Drops Below $100,000
Bitcoin (BTC) has experienced a significant drop of over 4%, falling to around $97,900. This decline has triggered over $150 million in liquidations within the last hour, contributing to a total nearing $388 million in 24 hours. The downturn is linked to broader economic factors, including falling traditional market indices and rising treasury yields, alongside profit-taking by long-term holders.
The cryptocurrency market is currently experiencing a notable downturn, with bitcoin (BTC) suffering a decline of over 4%, dropping from approximately $103,000 to around $97,900. This widespread sell-off has adversely impacted many leading cryptocurrencies; Ethereum’s ether has decreased approximately 7%, while XRP and Solana have dropped over 5% and 6%, respectively. Particularly hard-hit are Avalanche (AVAX) and Chainlink (LINK), which have both fallen more than 9%.
Liquidations within the cryptocurrency market surged to exceed $150 million in just one hour, contributing to a total of around $388 million within a 24-hour period, as recorded by CoinGlass. The decline is attributed to several influencing factors, including a downturn in traditional financial markets—evidenced by a 0.3% drop in the S&P 500 and over a 1% decrease in NASDAQ. Additionally, rising treasury yields, particularly a 5 basis point increase in the U.S. 10-year Treasury yield, which is now at 4.683%, have further exacerbated the situation. Meanwhile, a notable rise in job openings may signal a cooling labor market, leading to increased caution among investors.
Finally, profit-taking by long-term holders, cashing out portions of their significant gains, could also be generating additional selling pressure, amplifying the downward trend across various digital assets.
In recent times, the cryptocurrency market has demonstrated high volatility, often influenced by external economic indicators and market sentiments. The fluctuations of traditional markets, such as the S&P 500 and NASDAQ, significantly affect cryptocurrency values, as seen with recent trends. Furthermore, changes in treasury yields, particularly in U.S. government bonds, play a critical role in investor behaviors, often indicating shifts in financial stability or economic expectations. As a result, many investors are actively responding to these market signals, leading to abrupt changes in crypto prices.
In summary, the current sell-off in the cryptocurrency market highlights significant volatility, particularly impacting leading cryptocurrencies like bitcoin and Ethereum. With $150 million in liquidations occurring in just one hour, it is clear that both profit-taking by long-term holders and fluctuations in traditional markets are driving this trend. Investors should remain cautious as the cryptocurrency landscape continues to evolve rapidly, influenced by broader economic factors.
Original Source: www.cryptoglobe.com
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