Another flush within the crypto space dragged the Bitcoin price to its lows close to $94,000 regardless of the token forming highs above $100K. This depicts the traders being highly uncertain and pulling off their holding following a small pullback. Besides, the altcoins have been crushed heavily; the memecoins dropped by a massive margin.
What triggered the sell-off? Why crypto market is down today? Will BTC price hold the monthly open range?
The crypto markets underwent an unexpected turn before the previous day’s close, wiping nearly $260 billion from the market cap. Besides, the 24-hour trading volume surged exceptionally, reaching nearly $350 billion from $150 billion. This suggests the traders fell into the trap of panic selling, resulting in massive long liquidations. As per the data from Coinglass, the markets had one of the highest liquidations in recent history.
The crypto markets faced long liquidations of over $1.76 billion, with more than 5.86K traders liquidated. Interestingly, it was not Bitcoin that faced the highest liquidation but the other altcoins like Ethereum, Solana, Dogecoin, etc. The single largest liquidation was on Binance, liquidating $19.6 million worth of ETH, while the total liquidation of the second largest token is around $250 million, compared to $190 million worth of Bitcoin.
This suggests the traders remain hopeful of a BTC rebound but are uncertain about the prospects of the altcoins. Will the Bitcoin price trigger a rebound? Will it close the yearly trade above $100K?
Regardless of the market fluctuations, institutions continue to accumulate BTC. The spot BTC ETF marked another positive day with netflows of around $483 million. Blackrock’s IBIT maintains its 7-day inflow streak, bringing over $398. 6 million worth of BTC, totalling over $3.14 billion. The current market scenario suggests the institutions are benefiting from the trader’s panic selling. Now that the Bitcoin price has regained some momentum, the markets are expected to rebound in a short while.
