Cryptocurrency markets are on a downtrend as Bitcoin hovers near $65,000 due to a surge in liquidations, market corrections and panic selling.
Posted: March 19, 2024 3:03 AM Updated: March 19, 2024 3:05 AM
Correction and fact check date: March 19, 2024, 3:03 a.m.
briefly
Cryptocurrency markets fell with Bitcoin, Ethereum, and Solana witnessing an accumulated decline in value in recent weeks.
The overall cryptocurrency market cap is now at $2.6 trillion, down 5.85%. However, market trading volume increased by 43.85% to $197.23 billion. In this context, numerous cryptocurrencies have lost their accumulated value in recent weeks.
Bitcoin (BTC) has fallen significantly from last week’s all-time high of $73,750.07 (currently $64,865), falling nearly 10% over the past seven days, according to data from CoinMarketCap. The downward pressure on Bitcoin prices is linked to a total outflow of $643 million from Grayscale Bitcoin Trust (GBTC), which has seen sell-offs in the stock reach record highs.
There has been a significant outflow of funds from GBTC since the introduction of nine spot Bitcoin exchange-traded funds (ETFs) in the United States earlier this year. GBTC was recently converted to an ETF due to relatively high fees. This selling activity continues to put pressure on the Bitcoin price.
Cryptocurrency markets face decline due to liquidations, market corrections and panic selling
Following Bitcoin, most cryptocurrencies have continued their downward trend since yesterday. The three main factors that contributed to the market decline were liquidation issues, market corrections, and panic selling.
According to Coinglass data, severe liquidation issues have been observed in cryptocurrencies such as Bitcoin, Ethereum (ETH), and Solana (SOL). Previously, Bitcoin’s upward trajectory had a positive impact on the performance of altcoins. However, with Bitcoin falling from the $70,000 range, altcoins are also being affected. The market saw a total of over $666 million in liquidations, of which long-term traders accounted for $531 million.
Meanwhile, Bitcoin experienced a total of $246.66 million in liquidations, of which $195.61 million was in buy positions and the remaining $47.05 million was in sell positions. Regarding Ethereum, the recent Dencun upgrade resulted in a liquidation of the cryptocurrency’s price, reaching a total of $116.07 million. Of this total, $94.86 million belongs to long-term investors and $21.21 million to short-term traders.
Following the successful revival of the cryptocurrency market after experiencing three years of low returns, a slight decline is often considered typical and part of the market balancing process. Analysts at cryptocurrency exchange Crypto.com suggest that the market correction ahead of the Bitcoin halving, which would see the price of Bitcoin fall to $65,000, is a healthy move to reduce some of the leverage built up in the system.
Additionally, with the cryptocurrency market experiencing its strongest phase in a long time, investors are eager to take advantage of favorable conditions. Several altcoins have reached record highs in the past few days, which may have triggered panic selling due to price fluctuations. Notably, the market is not completely down and is expected to rebound in the near future. Therefore, these market conditions provide opportunities for short-term traders to maximize their profits.
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About the author
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through her work with VCs, notable cryptocurrency projects, and science writing. You can contact us at (email protected).
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alice davidson
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through her work with VCs, notable cryptocurrency projects, and science writing. You can contact us at (email protected).
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