The total cryptocurrency market cap slipped around 3 percent in the last 24 hours to about $2.48 trillion on Tuesday during the early European session. The altcoin industry registered the largest losses after Bitcoin (BTC) price briefly dropped below $65k. As a result, nearly half a billion dollars have been liquidated from the leveraged cryptocurrency market, which mostly involves long traders.
Will this be a short-lived scare or the start of something bigger? Read on to find out what experts are saying.
Significant Cash Outflows from Bitcoin ETFs
Fears of a prolonged bearish trend have driven more investors to shift from altcoins to stablecoins. As a result, Bitcoin’s market dominance has increased by about 1% in the past 24 hours, now standing around 56.18%.
Over the past week, U.S.-based spot Bitcoin exchange-traded funds (ETFs) have seen notable cash outflows. On Monday, Fidelity’s FBTC and Ark’s ARKB led the way with outflows of about $92 million and $50 million, respectively. Most spot Bitcoin ETFs, including BlackRock’s IBIT, recorded zero net flow on Monday. Consequently, the total net assets under custody in U.S. spot BTC ETFs are about $58 billion, with a traded volume of around $1.2 billion.
Liquidations and Bearish Sentiments
The recent cash outflows are linked to significant crypto liquidations and ongoing bearish market sentiments. Bitcoin’s price has been stuck in a multi-week consolidation phase between $61,000 and $72,000 over the past four months.
On Tuesday, Bitcoin traded around $65,578, slipping below the daily 50 Moving Average (MA), with the Relative Strength Index (RSI) nearing oversold levels.
If bearish sentiment continues, Bitcoin is expected to find solid support between $57,000 and $60,000. However, if the market rebounds from the current bearish trend, Bitcoin could potentially reach a new all-time high soon.
Altseason Ahead?
Following the recent approval of spot Ether ETFs in the United States, listings and trading are set to begin as early as next month.
Currently, Ether’s supply on exchanges is at an all-time low, alongside a notable increase in new Ethereum wallet addresses. As Bitcoin’s dominance approaches a macro falling logarithmic resistance level below 60%, the anticipated Altseason is expected to materialize in the near term.
Also Read: Bitcoin, Ethereum, And XRP Price Prediction: Is The Bull Rally Over?
Is the dominance of Bitcoin finally crumbling? Time will tell.
