The bitcoin spot ETF optimism has already faded, and halving isn't coming until April 2024. As shorts rushed in to close their bearish bets, it caused the cumulative open interest (which is the dollar value locked in open positions) in futures and perpetual swaps trading on Binance, OKX, Bybit, and Deribit to fall from $5.05 billion to $4.8 billion.ĭespite the upward move, the market remains weak, with no immediate bullish catalysts present for the price. The latest move is the result of a short squeeze. However, crypto prices have pared all those losses, with Bitcoin now trading at around $26,130 and Ether exchanging hands at $1,607 while the total crypto market cap is back at $1.07 trillion. In the past 24 hours, 49,239 traders were liquidated, and the total liquidations came in at $184.32 million, according to data from Coinglass. “We could even envision a scenario where prices materially drop lower into year-end,” said Matrixport.Īll this sell-off resulted in the largest long liquidations in three weeks, with close to $150 million worth of longs being liquidated. Ether, the second largest crypto asset by market capitalization, also fell to $1,540.Īs per Matrixport, ETH could drop further as the protocol's “revenue growth disappoints,” and a decline below $1,500 can bring back the possibility of a drop to $1,000. The largest cryptocurrency by market cap briefly dipped to as low as $24,963 for the first time since mid-June. The Trend Remains BearishĪll of this added to the bearish impact experienced by the market and sent Bitcoin price under $25K. Meanwhile, FTX founder Sam Bankman-Fried, who has pleaded not guilty to multiple fraud charges, has a trial due to start next month. The now-defunct exchange has asked a New York judge for permission to start selling off its crypto holdings to return funds to creditors in cash.Īnd for that, FTX has already tapped Mike Novogratz's digital asset investment firm, Galaxy, to assist with the sales. Layer 1 Solana's SOL slumped to just under $17.50, layer 2 Arbitrum's ARB tumbled under $0.750, and FTX's native token FTT plunged to $0.967 during the Monday sell-off.Īccording to a Monday court filing, the estate of the bankrupt exchange has around $7 billion in assets, including $560 million in Bitcoin and hundreds of millions in lesser-known illiquid micro-cap tokens such as MAPS and Serum (SRM). SOL is facing the most significant pressure among all altcoins because FTX holds $1.16 billion worth of that token, which is nearly 16% of its outstanding supply. The firm said this could weigh on altcoin prices for the rest of the year. Matrixport, a Singapore-based crypto services provider, noted in a Monday market report that “an altcoin crash is coming,” with FTX expected to start selling tokens as early as this week. Adding to the Downward Pressureīig transfers and investor sentiments worsened as crypto markets turned down sharply on concerns about FTX potentially shedding its $3.4 billion digital asset stash, adding worries to the already historically turbulent month in which BTC has been scoring negative returns every year since 2016. These firms included Jump Trading, Abraxas Capital Management, and Wintermute Trading, as they deposited more than $30 million worth of BTC, ETH, and ARB on various exchanges, according to analysis firms Arkham Intelligence and Lookonchain.ĭata reveals that asset manager Abraxas Capital transferred 14,130 ETH to Bitfinex, market maker Jump Trading sent nearly 236 BTC to Binance, and yet another market maker, Wintermute, deposited more than $3.3 million in ARB to Binance. The FUD (fear, uncertainty, and doubt) triggered by news of the FTX bankruptcy hearing further rattled the market, sending the index reading plummeting to 30 out of 100.ĭuring this time, besides traders and investors, many large trading firms also jumped onto offloading their millions of dollars worth of crypto assets. The crypto fear and greed index had been hovering at a cautious 40 out of 100 since mid-August. This downturn did not come as a complete surprise, as investor sentiment was already fragile. By Monday, this decline had brought the crypto market to a six-month low, falling to a level of $987 billion-last seen in March of this year. The fear led investors to panic sell, sending the crypto market cap plummeting below the $1 trillion mark as nearly $29 billion was wiped out. The cryptocurrency market has been experiencing a drawdown for the past month, which intensified in the past 24 hours with the fear of the bankrupt crypto exchange FTX dumping billions of dollars worth of crypto assets in the coming days.
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