Bitcoin, of course, accounts for the largest share of liquidations, with over $38.85 million in long positions cleared in that period. There was a huge liquidation of Ethereum and Solana long deals, reaching highs of $21.78 million and $10.7 million, respectively..
According to reports, the most important single liquidation during this period was in the XBTUSD pair on the Bitmex exchange, where $2 million was liquidated..
Major cryptocurrency exchanges such as Binance, OKX, Huobi, Bitmex and Bybit appear to have achieved liquidations of $67.79 million, $43.15 million, $12 million, $4 million, and $3.83 million, respectively..
The constant fluctuations in cryptocurrency prices are fueling the recent liquidation spree in the cryptocurrency markets. Bitcoin has been through highs and lows for almost two weeks, peaking at $36,000, the price last recorded in May 2022..
On November 1, the price of Bitcoin was at a low of $34.25K and then moved quickly to reach $36K on November 2. However, just 24 hours after the peak, Bitcoin is back at $34.5K..
This sudden rise and 4% drop is the main reason for the continuous liquidation of long positions. Bitcoin continues to drop hints of further declines, losing around 2.34% in the past 24 hours.
Ethereum’s behavior also indicates signs of continued price declines, losing more than 2.1% of its price over the past 24 hours. On almost the same tone, Cardano and MASK, which saw huge liquidations in short trades, recorded positive price movements, rising by 4% and 16% respectively over the past 24 hours. .
Cryptocurrency market down 3% and huge liquidation of deals
The cryptocurrency market cut 3% to $1.27 trillion in the past 24 hours, with total trading volume down more than 20%. The sell-off follows a long-awaited cryptocurrency market recovery amid immediate speculation of bitcoin ETFs, the US Federal Reserve’s successive interest rate “stoppage” and President Jerome Powell’s cautious rhetoric, which mitigated macro and geopolitical impacts; and renewed buying by institutional investors..
The index of fear and greed in the cryptocurrency market has fallen from 72 to 65 over the past 24 hours. However, overall sentiment remains bullish.
Traders decided to take profits as a result of Friday’s expiration. 42,000 BTC with a hypothetical value of $1.46 billion, are set to expire with a call ratio of 0.58. The maximum pain point is $30.000. In addition, 220.000 ETH options are set to expire with a hypothetical value of $390 million.
There is data indicating a massive liquidation of more than $150 million in the past two days. More than 52,000 traders have been liquidated in the past 24 hours, with the largest single liquidation order on XBTUSD from BitMEX worth $2 million. As a result of the sell-off, the broader cryptocurrency market is in red today..
Meanwhile, digital asset investment products saw inflows of $326 million last week, the largest one-week inflow since July 2022. Besides institutional buying of bitcoin amid the noise of bitcoin ETFs, Solana recorded the largest week of inflows of $24 million since March 2022.
Bitcoin price fluctuations and future expectations attract investments
Over the past week, the price of Bitcoin has surpassed $35,000, one of its highest points in 15 months. The digital asset is currently trading at around $34,300, having briefly touched $36,000 in the past 24 hours.
Family offices have shown interest in investing in cryptocurrencies. Institutional funds and other large institutions are waiting for the SEC to approve Bitcoin ETF.
Referring to two important developments on the chain after the recent rise in Bitcoin prices, Cryptoquan’s head of research, Julio Monero, recently said that the rally could pause. Profit taking was expected after a massive rise “higher”.
Moreover, the TD serial indicator provides a sell signal for Cardano (ADA), Shiba Inu (SHIB), Dogecoin (DOGE), andInjective (INJ). Cardano (ADA), Shiba Inu (SHIB), Dogecoin (DOGE) andInjective (INJ) prices rose last month during the cryptocurrency market recovery.
However, market sentiment remains positive as the uptrend continues after the rejection. Matrixport expects the price of Bitcoin to reach $45K in 2023 and $125K by the end of 2024. In addition, since the price of Bitcoin has officially formed the “golden cross” and overall factors have declined, Arthur Hayes, co-founder of BitMEX, recommends buying bitcoin..
The price of Bitcoin has fallen 3% over the past 24 hours, and the price is currently trading near $34,300. The lows and the 24-hour high are $34,358 and $35,458, respectively. Moreover, trading volume decreased by 25% in the last 24 hours..
On the other hand, some other experts in the cryptocurrency industry shared a similar view regarding Bitcoin’s recent rises. In a recent interview, Bitcoin’s impressive performance led to a significant rise in institutional investments, with CME trading volumes reaching unprecedented levels.
Bitcoin reached the 38.2% Fibonacci retracement level at $35,912 and touched the upper channel trend line before pulling, a move that market participants strongly observed.
This latest rise, however, has not been so much to do with spot ETF developments as with overall strength.” These macro strengths were identified after a cautious stance from the Federal Open Market Committee (FOMC) and a lower-than-expected estimate of Treasury supplies in the first quarter, which led to a significant decline in bond yields. This, in turn, has had a bullish impact on riskier assets, including Bitcoin and the broader cryptocurrency market.
However, Bitcoin is currently following gold’s lead as a safe-haven asset. “The market is beginning to appreciate the Fed’s overly tight and weakening policies. Besides geopolitical tensions , the need for quantitative easing in the future is growing rapidly. This causes insurance assets (gold and bitcoin) to rupture in unison.
In summary, QCP Capital’s insights into the dynamics of the Bitcoin market versus current bond market trends suggest that while the Bitcoin market is influenced by a variety of factors, including speculation about ETF approval, macroeconomic indicators such as bond yields play a larger role in determining market sentiment and price movement than other critics believe..
At the time of writing, Bitcoin was trading at $34,235 and was at risk of exiting the existing uptrend channel to the downside. If this happens, low price levels may come next.
In addition, interest from Asian markets, which were previously less involved in the Bitcoin ecosystem. According to him, this recovery reflects a genuine desire among major investors to enter the cryptocurrency market.
