Markets
Why BTC, ETH, SOL, XRP and other Altcoins saw a $100 billion sell-off
This week’s crypto market sell-off caused investors to lose more than $100 billion in assets as the crypto market value fell from $2.55 trillion at the start of this week to $2.45 trillion today. The market correction was triggered by Bitcoin’s loss of upward momentum amid panic selling due to a heavy macroeconomic week ahead.
CoinGape accurately predicted a watershed moment for the price of Bitcoin last week, before the price of BTC fell below $69K. Expiration of Crypto and Mixed Derivatives US employment data
, with the unemployment rate rising to 4.0% and a positive surprise in non-farm payrolls, caused negative sentiments. On the contrary, the household survey signaled a sharp decline in employment growth.
The decline in GameStop stock price and meme coin GME is also hurting the crypto market mood as Keith Gill aka Roaring Kitten
, continues to lead them. Meme coin GameStop (GME) is down more than 17% in the last 24 hours. Whereas GameStop shares fell 12.01% to $24.83 on Monday.
Panic selling ahead of FED and BOJ rate hike decision
The price of Bitcoin has fallen 4% in the last 24 hours, from a 24-hour high of $70,195 to a low of 67,325. At the time of writing, BTC price is trading at $67,776 and indicates low buying interest in the spot and derivatives markets. The 2.22% drop in CME Bitcoin futures open interest in the last 24 hours has severely impacted the upward trajectory.
The price of Ethereum (ETH) has also fallen by 4% in the last 24 hours, with the price currently trading at $3,528. The 24-hour low and high are $3,514 and $3,711, respectively. Other altcoins also fell in response to the drop in larger cryptocurrencies.
Traders brace for CPI inflation, US federal rate hike decision and Bank of Japan rate hike decision this week. Options and futures traders are selling to further drive sales in the crypto market.
Crypto Settlements Continue to Rise
According to Coinglass data, top cryptocurrencies have seen more than $170 billion in market value lost in recent sell-offs. More than 66,000 traders were liquidated in the last 24 hours, with the largest single liquidation order of ETHUSDT valued at $6.60 million happened on the cryptocurrency exchange Binance.
Nearly $145 million in long positions and $25 million in short positions were liquidated, with Bitcoin and Ethereum in total recording over $80 million in liquidation. This caused the crypto market to bleed, but it also offered an immediate buying opportunity.
Source: Coinglass
Meanwhile, the US Dollar Index (DXY) increased to 105.22. It has continued to remain volatile in recent weeks. Furthermore, US Treasury Yields it also rose to 4.445 as investors look for new economic data, expected this week, that could provide more information.
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