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What’s Happening With Cryptocurrencies? Understanding the Latest Crypto Liquidation
The global cryptocurrency market is currently experiencing a severe recession, with increasing liquidation threatening the stability of Bitcoin and altcoins.
Dig deeper to find out the latest on the cryptocurrency crash and see what experts are saying about the future.
Bitcoin Market Crash
At the time of writing, Bitcoin is priced at $54,541, down from $57,031 yesterday. Over the past four days, Bitcoin has fallen from $62,829, marking an 11.5% decline for the week. On June 29, Bitcoin was nearly $60,920.
On July 1, it peaked at $62,793, but in the last 24 hours alone, it has fallen by nearly 7.3%. The hourly chart of Bitcoin reveals strong selling pressure, highlighted by at least three prominent red candles. At the start of the day, the market saw balanced selling and buying pressure, with buyers having a slight advantage. However, sellers eventually took control.
Ethereum Follows Suit
Likewise, The price of Ethereum has plummeted over the past four days, suffering a 16.3% decline this week. On July 2, Ethereum was trading at around $3,417, but has since fallen to $2,868.8. On June 29, it was trading at around $3,372.
Despite hitting a weekly high of $3,441 on July 1, Ethereum has been steadily weakening. Several long red candles on the hourly chart indicate significant declines, with one showing a drop from $3,093 to $2,930. In the last 24 hours alone, Ethereum has fallen by more than 10.2%.
The current market landscape strongly favors sellers, with panic selling intensifying as prices plunge below $3,000. Over the past 24 hours, more than 221,704 traders have liquidated their holdings. Reports indicate that Ethereum liquidation has outpaced that of Bitcoin, with $44.5 million liquidated in the past hour alone and over $107 million in the past 24 hours.
The Uncertain Future of Ethereum
The exact cause of Ethereum’s sudden price collapse remains unclear. Expert Antony Sassano points to issues with the Grayscale ETHE Fund as a potential factor. Previously cheaper than the actual Ethereum it represents, the fund is now more expensive, causing investors to worry about future fees once the fund converts to an ETF. This uncertainty could prompt some investors to sell their holdings.
Memecoin Sector Collapses: What You Should Know
Almost all of the top ten meme coins have seen significant declines in the last 24 hours. Reports show losses ranging from 17% to 25%. Dogecoin, Shiba Inu, and Pepe are down 15.5%, 14.9%, and 16.2%, respectively. Dogwifhat, Bonk, and FLOKI are down 11.2%, 12.1%, and 15%, respectively. Brett has suffered a steep decline of 21.6%, while Book of Meme is down 17.9%. Mog Coin is reporting a more moderate decline of 8.0%.
With the launch of the Spot Ethereum ETFs With just a few weeks to go, the future of the cryptocurrency market remains uncertain. Whether this development will help the market recover remains to be seen.
Read also: Will July 2024 Be Next May 2021? Has the Bear Market Begun? Will BTC Price Crash Below $50,000?
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