Altcoins
Why Bitcoin and Altcoins Are in Freefall
The cryptocurrency market is returning to bearish territory, with the global cryptocurrency market cap falling 20% to a low of $2.15 trillion today. market capitalization Bitcoin price has fallen by more than 4.20% in the last 24 hours. Bitcoin price hit a 24-hour low of $57,800, falling back to the key support level, risking a collapse to $52,000.
Altcoins including Ethereum, BNB, Cardano, XRPand Toncoin fell by more than 5%. While Solana ecosystem tokens and meme coins, as well as some AI coins have seen double-digit declines in the last 24 hours.
Cryptocurrency market sentiment falls back into fear due to panic selling by investors ahead of Mount Gox $10 billion in BTC and BCH repayments starting this week. JPMorgan and CoinShares have warned of a market shake-up amid fears of a potential sale by creditors.
The cryptocurrency market is officially in a bearish phase
According to Coinglass, $300 million worth of cryptocurrencies have been liquidated in the past 24 hours. Over 102,000 traders have been liquidated, with the largest single liquidation order on crypto exchange OKX being someone who traded ETH for USD worth $4 million.
Nearly $250 million in long positions and $50 million in short positions were liquidated in the past 24 hours. Investors lost over $90 billion in the past 24 hours as the cryptocurrency market cap fell from $2.24 trillion to $2.15 trillion.
Meanwhile, more than 17,500 BTC options Bitcoin with a notional value of $1.02 billion is set to expire, with a put/call ratio of 0.76. The maximum pain point is 62,500, indicating that Bitcoin price will remain under selling pressure as BTC fell below $59,000 today.
Notably, the put/call ratio over the past 24 hours has climbed over 1.09, with put volume above 17,200 and call volume near 15,793. This indicates that options traders have become very bearish on Bitcoin.
Source: Deribit
Implied volatility (IV) across all terms is showing significant declines, meaning that a market recovery into uncertain price movements will see BTC price drop below $70,000.
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Macroeconomic impacts continue to amplify
Fed Chairman Jerome Powell The latest speech and the release of the FOMC minutes confirmed Fed officials’ aggressive stance on rate cuts this year. The election saga with Trump in the lead after the last debate has increased pressure and Fed officials are awaiting fresh data on US inflation and the labor market.
CME FedWatch The Fed’s forecast for two rate cuts this year is rising. The probability of a 25-bps rate cut in September has increased to 66.5% from 59% last week. Weak U.S. economic data has reinforced the Fed’s forecast for rate cuts this year.
US Dollar Index (DXY) held around 105.3 on Thursday after hitting a three-week low in the previous session. Also, the 10-year U.S. Treasury yield fell to 4.35% after the latest ISM and employment data showed a slowdown in the labor market.
Analysts predict that a market rebound could happen at any time and shorting Bitcoin and altcoins could turn out to be the worst move. Thus, they believe that a consolidation near the current level and a rebound above $61,000 by the end of the week is expected.
“A decrease in USDT liquidity will not drive BTC growth, rather, the growth will demonstrate the demand to buy coins,” according to an on-chain analyst.
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