The total cryptocurrency market cap has plunged by more than 8 percent in the past 24 hours, settling around $2.09 trillion as of Friday morning in Europe. Over the last four weeks, the market has shed approximately $600 billion in value, primarily driven by Bitcoin’s (BTC) downturn.
As per the latest market data, Bitcoin’s price has plummeted nearly 9 percent in the last 24 hours, trading around $54,000. This ongoing sell-off has resulted in the liquidation of nearly $700 million from crypto derivatives trading, with the majority of losses incurred by long traders.
On-chain data from PeckShield reveals that a whale was liquidated for about 173,230 Ether, worth approximately $10.7 million.
Top Reasons for the Crypto Crash
Several other crypto whales have faced liquidations following Bitcoin’s sudden drop. These forced sales have increased the market decline, causing widespread concern among investors.
The recent crypto crash can be attributed to multiple negative events:
- Economic Uncertainty and Political Changes: The US Federal Reserve’s signals of further economic uncertainties, coupled with the UK’s political shift as the Labour Party gained majority, have added to market volatility.
- Whale Sell-Offs: The German government, holding around 40,000 Bitcoins, has triggered a wave of sell-offs. On-chain data indicates that Bitcoin whales have offloaded more than 30,000 BTC in the past month.
- Declining ETF Demand: The demand for US-based spot Bitcoin ETFs has been waning in recent weeks.
- Mt. Gox Payouts: After over a decade, Mt. Gox has started distributing more than 100,000 Bitcoins, valued at over $7 billion, to its customers.
A Bearish Outlook with a Silver Lining?
The cryptocurrency market has been stuck in a bearish trend over the past month, and this trend seems likely to persist. However, some analysts are drawing parallels between the current cycle and the 2017 bull run, which saw several corrections ranging from 25 to 40 percent.
Despite the prevailing bearish sentiment, market analysis firm Santiment suggests that bold traders could capitalize on the current atmosphere of crowd anger and frustration. While caution is advised, there may be significant opportunities for those willing to navigate the turbulent market conditions.
Read More About This: Mt. Gox Moves 47,229 Bitcoin: Will the Crypto Market Face a Massive Sell-Off?
The crypto market is in flux – what are your predictions for the coming weeks? Let’s discuss!
