The cryptocurrency market’s massacre continued, with mood plummeting to acute dread and the whole crypto market cap plummeting roughly 5 percent in the past 24 hours. BTC and key altcoins have been unsuccessful at increasing their prices in recent hours, resulting in a large cancellation of long orders. BTC and ETH, the two most popular cryptos, have dropped almost 5 percent and 6 percent in the previous several hours, respectively.
Crash of the Cryptocurrency Market
Over $123M has been liquidated in the cryptocurrency market in the past 4 hours, based on Coinglass statistics, with long orders contributing to 95 percent of those transactions. More than $225M in trades were wiped out in the preceding 24 hours, resulting in the liquidation of 75,050 traders. Additionally, cryptocurrency exchange Okex had a 98 percent liquidation rate, with the highest single liquidated transaction being $3.33M.
In the past 24 hours, ETH and BTC values have been unable to maintain crucial price levels. In the past 4 hours, Bitcoin sank 5 percent, and Ethereum dropped 6 percent, with the current price trading between $38,947 and $2917, respectively. Both ETH and BTC prices have plummeted to their 1-month low.
As a result, other cryptos have also dropped in value. In the previous 24-hour, ADA, Ripple, SOL, DOGE, LUNA, and AVAX values have plummeted by approximately 6 percent. The cryptocurrency market has been in a slump over the previous week due to the Fed’s rate rise and monetary policy choices, as well as the market’s persistent negative mood.
ETH and BTC Prices Fall 7% in a Week
As a result of profit-taking by short-sellers, the price of ETH and BTC has fallen to their lowest point in one calendar month. Santiment says both of the biggest cryptos have shown symptoms of surrender, with traders making trades at a loss in the past week. Furthermore, cryptocurrency specialists have cautioned that ETH and BTC might fall below critical levels.
Breaking below $37,000 might cause BTC’s price to fall much more. Also, if ETH’s price falls below $28,000, it may see more selling. On the other hand, Whale purchasing may cause the cryptocurrency market to rise.
Where Will the Losses Reach Their Low Point?
Based on price behavior, Bitcoin has appeared to have struck a fresh bottom of about $40K in recent days. However, today’s drop disproves that assumption and traders are looking for the next low. Concerns about increasing inflation and an aggressive Fed drove Bitcoin prices to their lowest point of the year in January, at $33K. The majority of traders believe this is the coin’s likely bottom.
However, according to Bitcoin’s realized price—a common predictor of a likely bottom—the coin might fall as low as $25K, its lowest level since 2020. Nonetheless, a well-known expert, Plan B, believes that such a situation is implausible.