Altcoins
$300 Million Liquidated as Bitcoin (BTC) and Altcoins Enter Strong Correction, What’s Next?
Following a major celebration on Satoshi Street the previous week, Bitcoin (BTC) and alternative cryptocurrencies are now struggling with a slowdown as the broader cryptocurrency market undergoes a correction of more than 3%.
Bitcoin (BTC) saw a decline of up to 7.5%, dropping to $40,521, only to recover some of its losses and stabilize at a 4% decline, currently trading at $42,095. Currently, Bitcoin (BTC) is down 3.37%, with a price of $42,357 and a market cap of $828 billion.
$300 million liquidation as Bitcoin (BTC) corrects
According to data According to CoinGlass, nearly $300 million in long positions were liquidated in the last four hours. This applies to the entire crypto market, with small-cap altcoins seeing an even bigger drop.
Bitcoin has seen significant momentum this year, fueled by anticipations of regulatory approval for the first spot Bitcoin exchange-traded funds (ETFs) in the United States, which could broaden the scope of potential crypto investors. cash.
Additionally, speculation about possible interest rate cuts by the Federal Reserve in the coming year has further contributed to the rise in virtual currencies. Speaking to Bloomberg, Sydney-based Richard Galvin, co-founder of Digital Asset Capital Management, said:
“Market leverage has increased significantly. The current fall looks like a market deleveraging rather than a fundamental news catalyst.
Investors are also bracing for important events this week, including U.S. inflation data and the Federal Reserve’s final 2023 policy meeting. These developments could further challenge bold speculation about possible cuts rate.
Additionally, Tony Sycamore, Market Analyst at IG Australia Pty, suggests that profit taking is a logical response, and he predicts that this trend will diminish towards $40,000 to $37,500 The range will find strong support from buyers looking to take advantage of the decline.
Altcoins face deeper decline
Altcoins, in particular, have had a gala week with sharp price increases over the past seven days. However, it seems the party has stalled for the moment.
Minor cryptocurrencies including Ether, XRP, Polkadot and Avalanche saw declines. The index reflecting the top 100 digital assets saw a decline of around 4%, marking the largest decline since November 22.
Ether (ETH) posted a decline of over 4%, while various tokens like FLOW, CRO, APETHETA, XTZ, NEO, TON, KAVA, and PYTH saw 24-hour declines exceeding 10%.