Hassan Maishera
TL;DR
-
Bitcoin is trading below $103k after hitting the $105,600 mark on Monday.
-
The decline has caused over $500 million worth of long liquidation in the crypto market in the last 24 hours.
Long Traders Lose Over $500M as BTC Dips to $102k
The cryptocurrency market was bullish over the weekend, with Bitcoin hitting the $105k level for the first time since February. The rally also saw Ether add 35% to its value in the last seven days and traded above $2,600.
However, Bitcoin gave up some of its gains on Monday despite the United States and China announcing a temporary truce in their trade war. BTC has now lost nearly 2% of its value in the last 24 hours and now trades above $102,400 per coin.
Data obtained from CoinGlass revealed that yesterday’s sharp pullback triggered over $500 million in long liquidations. CoinGlass added that nearly $200 million of the $530 million liquidated came from bitcoin-tracked futures and $170 million from ether (ETH) products.
Ether has lost 2% of its value in the last 24 hours and now trades below $2,500 per coin. Dogecoin (DOGE) is the worst performer among the top 10 cryptocurrencies by market cap, losing 7% of its value.
Meanwhile, Ripple’s XRP added 4% to its value, outperforming the other major cryptocurrencies. The total cryptocurrency market cap has now dropped to $3.29 trillion thanks to yesterday’s poor performance.
In an email to Cryptowisser, Ruslan Lienkha, chief of markets at YouHodler, attributed the recent rally to improved market sentiments. Lienkha stated that,
“The crypto market is rising due to improved sentiment across global financial markets, primarily driven by successful negotiations between the U.S. and China. Bitcoin, in particular, is gaining momentum and is approaching a potential new all-time high. If optimism in equity markets persists, BTC will likely challenge and potentially surpass its previous highs in the coming days.
Ethereum appears even more compelling, with significant upside potential. The recent Pectra upgrade was implemented smoothly, accelerating growth momentum, especially given that the ETH/BTC ratio had recently been at multi-year lows, creating room for a relative rebound in ETH performance.”
Sergei Gorev, head of risk at YouHodler, added that ETH’s recent growth could indicate a broader trend for altcoins. Gorev stated that,
“Since the price lows in the spring, ETH has grown by more than 70%. This is a crucial indicator, as the ETH/BTC ratio has been showing a long downward movement for a very long time. It is difficult to say whether the movement of ETH/BTC is a new leading signal for the entire cryptocurrency market. Or it's just an upward correction so far. However, the first step has already been taken. This is a stronger growth of ETH than BTC. ETH is the unofficial leader of the second-tier coins. Suppose the price stays at these price levels for a while. In that case, it will give an additional boost to the rest of the less popular and illiquid coins on the market, which may later also trigger the long-awaited season of coins of 3-10 echelons, which everyone has been waiting for for so long.”
