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What’s Happening With Cryptocurrencies? Understanding the Latest Crypto Liquidation
The global cryptocurrency market is experiencing a severe recession right now. The trend of increasing cryptocurrency liquidation threatens Bitcoin and altcoins.
Here is an overview of the cryptocurrency market crash.
Bitcoin Market Crash
At the time of writing this article, the price of Bitcoin is $54,541. Yesterday, it closed at around $57,031. The price has dropped sharply over the past four days from $62,829. This week, it has dropped 11.5%. On June 29, it was almost $60,920.
On July 1, it reached a weekly high of $62,793. In the past 24 hours, the price has dropped by almost 7.3%. On the hourly chart of bitcoin, there is strong selling pressure. At least three red candles with long bodies have been created so far. Although in the early hours of the day, selling pressure was almost equal to buying pressure, with buyers having a slight advantage, later sellers took control of the market.
Sharp drop in Ethereum price
Like Bitcoin, The price of Ethereum has dropped sharply in the last four days. This week, it has seen a decline of 16.3%. On July 2, the price was around $3,417. At the time of writing this article, it remains at $2,868.8. On June 29, the price was around $3,372.
Although it reached a weekly high of $3,441 on July 1, it has been steadily weakening since then. Several long red candles have been created on the hourly chart of Ethereum. The longest one shows the price falling from $3,093 to $2,930. In the last 24 hours alone, a decline of over 10.2% has been observed.
The current market shows the upper hand for sellers. The sharp price drop below $3,000 is believed to have intensified panic selling. According to a report, over 221,704 traders have liquidated in the last 24 hours alone. The report adds that Ethereum liquidation has surpassed that of Bitcoin. The report says that Ethereum liquidation has reached $44.5 million in the last hour alone and has surpassed $107 million in the last 24 hours.
The reason for the sudden drop in the price of ETH is unclear. An expert named Antony Sassano points to the issue of the Grayscale ETHE Fund as the reason. According to him, the Grayscale ETHE Fund, which was cheaper than the actual Ethereum it represents, is now more expensive. This change worries investors because they are unsure of the fees they will pay once the fund converts to an ETF. The expert believes that the uncertainty is causing some investors to consider selling their holdings.
Memecoin Sector Collapses: What You Should Know
Almost all of the top ten Memecoins have dropped drastically in the last 24 hours. A report shows that major meme coins have lost between 17% and 25%. Dogecoin, Shiba Inu, and Pepe show a decline of 15.5%, 14.9%, and 16.2% respectively. Dogwifhat, Bonk, and FLOKI show a decline of 11.2%, 12.1%, and 15% respectively. Brett has witnessed a sharp decline of 21.6%. BOOK OF MEME has also observed a severe decline of 17.9%. Mog Coin reports a slight decline of 8.0%.
The launch of Spot Ethereum ETFs is just a few weeks away. It remains to be seen whether the cryptocurrency market will rebound.
Read also: Will July 2024 Be Next May 2021? Has the Bear Market Begun? Will BTC Price Crash Below $50,000?
Stay tuned to Coinpedia for more updates on the cryptocurrency market crash!