Altcoins
$440 million lost in Altcoin liquidations
9:14 a.m. ▪ 3 min reading ▪ by Fénelon L.
As the crypto market falls for the second day in a row, investors are bearing the brunt of major altcoin liquidations. A wave of capitulations now amounts to more than $440 million in just 24 hours.
Crypto market winter drags on
The last 24 hours have brought crypto market to the test. The overall capitalization fell by 3%, reaching $2.45 billion. At the heart of this storm, almost all of the top 100 digital assets suffered significant losses.
Bitcoin lost 2% of its value, while Ethereum plunged 3%. However, altcoins paid the price severe declines, with major tokens such as Fantom (FTM), Enjin (ENA), SUI, and Uniswap (UNI) seeing declines of up to 17%. In this context, the dominance of Bitcoin has even crossed the 56% mark, a level not seen since last March.
According to CoinGlass data, this turmoil led to the liquidation of 161,137 traders, for a colossal amount of $443.93 million. Ethereum faced $75 million in long liquidations, while Bitcoin accumulated $47 million.
The shadow of massive unlocks looms over Altcoins
Many analysts identify the recent massive token unlocking as the main factor behind this altcoin collapse. The company 10xResearch highlights the dumping of $483 million in tokens from projects such as Aptos, Immutable X, Strike, Sei Network, Arbitrum, ApeCoin and Uniswap.
“Early investors and venture capital funds appear to be under enormous pressure to exit. These massive flows are causing Bitcoin to fall,” explains the company. Furthermore, recent data reveal that US Bitcoin ETFs recorded over $145 million in cash outflows as of June 17.
Michael Van de Poppe, a renowned crypto analyst, believes that this fall represents the final phase of altcoin capitulation. “It’s the usual cycle, I’ve already seen it in 2020,” he comments.
This violent correction, although indicative of troubles that seem far from over, could nevertheless constitute a decisive turning point for the crypto market. Indeed, such events, as painful as they may be, have often served as a catalyst for a market reorganization.
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Fenelon L.
Passionate about Bitcoin, I like to explore the intricacies of blockchain and cryptos and I share my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.