A new flush within the crypto space dragged the Bitcoin price to a low of almost $94,000, regardless of whether the token formed highs above $100,000. This shows that the traders are very insecure and withdraw their position after a small pullback. Moreover, the altcoins have been badly crushed; the memecoins fell by a huge margin.
What prompted the sell-off? Why did the crypto market fall today? Will BTC Price Maintain Monthly Open Range?
The crypto markets took an unexpected turn before the previous day’s close, wiping out nearly $260 billion in market capitalization. In addition, 24-hour trading volume increased exceptionally, from $150 billion to almost $350 billion. This suggests that traders fell into the trap of panic selling, which resulted in massive, prolonged liquidations. According to Coinglass data, the markets saw one of the largest liquidations in recent history.
The crypto markets witnessed prolonged liquidations of over $1.76 billion, with over 5,86,000 traders liquidated. Interestingly enough, it wasn’t Bitcoin that faced the biggest liquidation, but the other altcoins such as Ethereum, Solana, Dogecoin, etc. The largest liquidation occurred on Binance, with $19.6 million worth of ETH being liquidated, while the total liquidation of the second largest token is complete. $250 million, compared to $190 million in Bitcoin.
This suggests that traders remain hopeful of a BTC recovery but uncertain about the altcoins’ prospects. Will Bitcoin Price Stage a Recovery? Will it close the annual transaction above $100,000?
Regardless of market fluctuations, institutions continue to accumulate BTC. The spot BTC ETF marked another positive day with net flows of approximately $483 million. Blackrock’s IBIT maintains its seven-day inflow streak, bringing in over $398. 6 million worth of BTC, totaling over $3.14 billion. The current market scenario suggests that the institutions are benefiting from the trader’s panic selling. Now that the Bitcoin price has regained some momentum, the markets are expected to recover within a short time.
Credit : coinpedia.org
