Bitcoin (BTC) saw a decline of more than 3% in early Asian trading hours, amid widespread stock market turmoil and weak confidence in risky assets such as cryptocurrencies. Bitcoin fell from more than $65,500 to about $64,000 in minutes at the start of Tokyo trading, liquidating more than $250 million in bullish bets, the worst since early July.
Liquidations occur when the exchange closes out a leveraged trader’s position due to the loss of the trader’s initial margin. This data is important to traders because it indicates that leverage is fading from futures products, reflecting a short-term decline in price volatility.
The CoinDesk 20 (CD20) index, which tracks the largest coins by market capitalization excluding stablecoins, fell 3.3%. Long Ethereum (ETH) contracts also saw the largest losses at $100 million, as a result of a 7.5% decline in the token amid outflows from the new ETH ETF.
Losses extended to Asian markets early Thursday, with Japan’s Nikkei 225 index falling more than 3% amid fears the Bank of Japan will raise interest rates. Binance recorded the largest inter-exchange liquidations at $118 million, of which 88% were long trades.
The decline came at a time when US technology stocks took a hit, sending the tech-heavy Nasdaq 100 index to lose 660 points, its biggest drop since 2022. Mixed quarterly earnings from Alphabet (GOOG) and Tesla (TSLA) also caused Shares of both companies fell by up to 12%, causing the Magnificent 7 group to lose more than $750 billion in market value, the largest loss on record for the group.
Trump Chairs Bitcoin 2024 Conference After Criticizing Cryptocurrencies: Surprising U-turn and Political Support
Republican candidate and former US President Donald Trump previously criticized cryptocurrencies, calling them a “scam.” However, he now chairs one of the largest conferences in the industry. Trump will participate in the 2024 Bitcoin Conference in Nashville, where he will speak on Saturday, the final day of the three-day conference. Former Republican candidate Vivek Ramaswamy, Sen. Bill Hagerty of Tennessee, and Sen. Cynthia Lummis of Wyoming, along with U.S. Representative Ro Khanna of California, will also participate in the event.
Trump has the support of some cryptocurrency advocates, including the billionaire Winklevoss twins, founders of Gemini. He had received $1 million in bitcoin from each of them, but had to return it because it exceeded the maximum allowed under federal law.
In a report released in May, the Federal Reserve noted that 7% of US adults owned or used cryptocurrencies in 2023, down 3 percentage points from 2022 and 5 percentage points from 2021. However, the annual conference is attracting a growing number From politicians.
Additionally, the Core Foundation on Thursday announced the introduction of a double-signature model for the Core blockchain, which builds on Bitcoin’s non-custodial staking system, which was launched earlier this year. The dual staking model allows Bitcoin holders to earn higher returns by staking both Bitcoin and CORE tokens, according to a press release shared with Decrypt.
While users can continue to stake just Bitcoin for the base “risk-free rate,” those who also hold CORE tokens will be eligible for enhanced “double stakers rates.”
In addition, long-term bettors will receive higher rewards compared to those who bet for shorter periods.
Bitcoin faces a major challenge as $5.5 billion worth of options expire
July 26 is a pivotal date in the cryptocurrency market, especially for Bitcoin. On this day, a whopping $5.5 billion worth of Bitcoin options expire. This event comes after a series of huge transactions and reshuffles that shook the market. This test is a major challenge for traders’ strategies in a volatile market.
Massive dumping and distribution of Bitcoin
In recent weeks, the Bitcoin market has seen significant selling moves. On July 24, Mt.Gox transferred 42,583 bitcoins to trading accounts, marking the end of a long period of uncertainty for creditors of the bankrupt exchange after more than a decade of waiting. Additionally, Germany sold its Bitcoin reserves on July 12, adding to the selling pressure in the market. Genesis Trading, which is facing financial difficulties, transferred 14,000 bitcoins to Coinbase last month based on an order from a US court, requiring the company to pay $2 billion to its investors. Despite these transactions, Genesis still owns 32,256 BTC, indicating the possibility of more sales in the future.
Options analysis and traders’ strategies
The upcoming options expiration makes traders’ strategies even more important, especially for those with bullish positions. Despite increasing selling pressure, some traders are betting on Bitcoin’s price surpassing $70,000, relying on high call options that, if realized, could generate significant profits. Results are based on the final price of Bitcoin on expiry day. For example, if Bitcoin’s price remains between $66,000 and $67,000, call options will favor optimistic traders with a margin of $260 million.
This month’s options expiration is not just a simple financial mechanism, but an indicator of the health of the Bitcoin market. Last-minute moves may confirm bulls’ confidence or indicate a deeper correction if key support levels do not hold.
