Major Cryptocurrencies Take a Hit as Over $200M in Longs Are Liquidated

Leading cryptocurrencies Bitcoin, Ethereum, and Dogecoin saw their values fall sharply as over $200 million in long positions were liquidated, rattling the market on Thursday evening. The data from Coinglass reveals that a significant number of long bets were wiped out in the past 24 hours, contributing to the downward trend in prices.

The Impact of Liquidations

Bitcoin longs exceeding $65 million were cleared off the books, while Ethereum saw more than $27 million in longs liquidated. Dogecoin also faced declines, with its value decreasing as investors encountered losses. The total number of liquidations counted up to 90,781 traders, blending long and short positions, with a cumulative value of $227.91 million. Binance witnessed the largest single liquidation event involving a BTC-USDT trade valued at $7.31 million.

Market Movements Post ETF Approvals

Since the approval of spot Bitcoin ETFs on January 11, the Bitcoin market initially saw a modest uptick, only to decline approximately 13%. During the first week following the introduction of spot Bitcoin ETFs, issuers bought over 68,000 bitcoins. In contrast, Grayscale’s GBTC reduced its Bitcoin holdings by about 40,000, resulting in an overall addition of 28,000 Bitcoins to the ETF market.

Recent Economic Indicators

Current economic indicators show strength in the labor market and a rise in consumer spending. This resilience of the job market and robust purchases has led some investors to speculate that the Federal Reserve might not cut rates as much as previously expected.

Analyzing Cryptocurrency Trends

Market analysts, including Michael Van de Poppe and Rekt Capital, provided insight into the market's behavior. They indicated that the market is already in a downturn and that post-Halving, Bitcoin could witness new all-time highs provided it moves past pivotal resistance levels. Meanwhile, on-chain analytics firm Santiment reported optimism due to early January's Spot Bitcoin ETFs approvals, cautioning that the initial excitement might lead to a shift in sentiment if market prices continue to fall.

Bitcoin, Ethereum, Dogecoin, liquidation, ETF, market, finance