• 13 October, 2024
Market News News

Bitcoin and Ethereum Dip Amidst $393M Liquidation: A Bear Market Ahead?

Bitcoin and Ethereum Dip Amidst $393M Liquidation: A Bear Market Ahead?

The cryptocurrency market has experienced a wave of volatility resulting in substantial liquidations. Recent data indicates a tumultuous period for digital assets, with major currencies like Bitcoin (BTC) and Ethereum (ETH) undergoing sharp declines. This has prompted a significant amount of liquidations across the board, reflecting the precarious nature of this innovative yet unpredictable market.

Within just an hour, the cryptocurrency market saw an astonishing $157 million in liquidations, disproportionately affecting traders with long positions who bore the brunt of this rapid market movement. Bitcoin’s unexpected drop to as low as $66,000 and Ethereum’s dip to $3,319 showcases the inherent risks involved in the digital currency trading spaces. The data, derived from Coinglass’ liquidation heatmap, paints a picture of the current landscape where volatility is not just a buzzword but a tangible phenomenon impacting investors.

Source: Coinglass

The information from the heatmap, specifically focusing on a 1-hour timeframe, highlights a staggering $144 million in long position liquidations. Such a figure not only encapsulates the extent of the financial hit to bullish traders but also signals a market that is ever-responsive to both external stimuli and internal dynamics. The heatmap’s color-coded system underscores the severity of the liquidations, with darker shades marking more significant financial impacts.

Expanding the lens to a 4-hour period, the liquidations amount to $56.80 million, split between longs at $45.98 million and shorts at $10.82 million. The 12-hour outlook is even more daunting with $278.18 million wiped off the market, further attesting to the high-stakes environment of cryptocurrency trading. Within a full day, the market experienced total liquidations amounting to $393.29 million, with a record single liquidation event on the OKX – ETH-USD-SWAP valued at $7.48 million.

Notably, Bitcoin (BTC) has seen a slight decline of 0.1% in its price in the past hour, standing at $66,549 at press time, following a 5.7% drop over the past 24 hours, impacting its market capitalization which now stands at approximately $1.31 trillion. Meanwhile, Ethereum (ETH) has ticked up 0.3% in the past hour, priced at $3,384.28, despite a 7.2% decrease in the last day, with its market valuation hovering around $405.87 billion.

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