In a tumultuous turn of events, the cryptocurrency market has been rocked by a sharp drop in bitcoin prices. After a sustained period of notable gains and all-time highs, bitcoin has plummeted to a weekly low of $65,000, dealing a major setback for investors.
At the time of writing, The bitcoin numbers were all painted in red. and trading at $65,710, losing value in the 24-hour and weekly terms by 5.6% and 4.5%, respectively, according to Coingecko data.
A few days after its previous low of $68,000, bitcoin plummeted to its current level, a figure not seen in a week, as the bears persisted in their downward pressure.
bitcoin plunging in the last 24 hours. Source: bitcoin" target="_blank" rel="nofollow">Coingecko.
Altcoins Take a Beating Too
While bitcoin bears the brunt of the recession, altcoins are not spared from the consequences. ethereum (eth) and Binance Coin (BNB) have also witnessed substantial losseslosing 10% of its value or more.
Dogecoin and Shiba Inu, two popular meme coins, have seen even steeper declines, falling 20% and nearly 30%, respectively. The broader altcoin market reflects bitcoin's downward trajectory, amplifying the sense of unease among investors.
btc market cap currently at $1.29 trillion. Chart: TradingView.com
bitcoin: impact on market dynamics
The recent bitcoin price correction has reverberated across the cryptocurrency landscape, reshaping market dynamics and investor sentiment. The increase in settlements, with more than 151,000 traders facing margin calls in the last 24 hours, underlines the magnitude of the market turmoil. bitcoin's dominance in the market is evident as it accounts for the majority of total liquidations, highlighting its pivotal role in shaping overall market trends.
As a result of the drop in value, total market liquidations have reached $426 million, with bitcoin being the most affected.
Liquidation Spree
The amount that the price of bitcoin has liquidated in the last 24 hours has exceeded $104 million, and long-term traders lost the most money: they lost $86 million compared to $18 million. short-seller dollars. ethereum saw an overall liquidation of $48 million, of which $33 million went to long traders and $15 million to short traders, as a result of the losing streak.
The analyst sounds the alarm siren
Meanwhile, market analysts such as Markus Thielen, CEO of 10x Research, have sounded the alarm, warning of new downside risks for bitcoin. Thielen's prediction of a possible drop to $63,000 sends a sobering message to investors, urging caution and prudence when navigating the current market environment.
Their insights shed light on underlying concerns about bitcoin market structure, including low trading volumes and liquidity, which exacerbate the risk of sharp price corrections.
Amid the market turbulence, investors are grappling with the implications of Thielen's analysis and adjusting their strategies accordingly. The era of meme coin mania appears to be waning, leading investors to reevaluate their positions and lock in profits while they can.
Featured image of Kinesis Money, TradingView chart
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