Altcoins
The recent price drop explained
Bitcoin (BTC) the price fell to a one-month low after three consecutive trading days of exits from its spot exchange-traded funds (ETFs).
The leading digital asset soared to $67,000 before falling to around $64,500 in early Asian trading hours. Other major cryptocurrencies like Ethereum (ETH), Solana (SOL)and Toncoin (TON) also saw significant declines, each losing more than 3%.
Markus Thielen, founder of 10x Research, posited that the recent altcoin price decline was anticipated due to last week’s significant token unlock. He noted that digital assets such as Aptos, IMX, Starknet, SEI and Arbitrum were unlocked for a total amount of $483 million. This situation caused venture capitalists to withdraw their funds, contributing to the downward pressure on Bitcoin.
He added:
“As altcoin volumes in Korea collapsed, so did funding rates, leading to slower Bitcoin ETF flows. It is surprising that Bitcoin failed to recover despite weak inflation data, but the crash of Ethereum and altcoin could have been predictable.
455 million dollars liquidated
According to Coinglass data, recent price movements saw $455 million liquidated across all assets of over 172,000 crypto traders over the past day. Long traders lost $393 million, while short traders saw $62 million liquidated.
Ethereum speculators suffered significant losses, amounting to approximately $92 million, or 20% of the total losses. ETH traders betting on price increases lost $75 million, while $16 million was liquidated from short position holders.
On the other hand, Bitcoin saw $47.43 million in long liquidations and $22.71 million in short liquidations. Large-cap cryptocurrencies like Solana, XRPAnd Dogecoin also faced notable liquidations, amounting to $18 million, $4 million, and $60 million, respectively.
Crypto traders using the Binance platform accounted for more than 37% of the market’s total losses, amounting to $170 million over the past day. The largest liquidation was a long ETH position of $6.64 million.