The bigger they are, the harder they fall, isn’t it? Crypto is not new to falling; coins fall all the time, both big and small. But when the giants fall, it certainly doesn’t go unnoticed. And when they both fall simultaneously, they become headline news.
When it comes to crypto, two coins reign supreme, and everyone knows it. Bitcoin and Ethereum are the alpha dogs of the crypto world, but over the past 24 hours, the market has shown both coins who’s boss.
Related: Mt. Gox Pushes BTC Below $66K After Sending $2.5B in BTC to an Unknown Wallet
In just over 24 hours, the crypto market saw a huge amount of liquidations come out of nowhere. Figures put this massive liquidation of long positions at about $220.7 million, which means most of the betting positions on crypto are in one direction.
Short positions liquidated also came to about $32 million. You might be wondering what exactly is going on with the market. But back to our big two coins, they both took a huge chunk of the total amount of liquidations recorded. A total of $17.5 million out of the liquidations were attributed to Ethereum, while Bitcoin accounted for $14.8 million out of the total lot.
It’s safe to say that the liquidations did no one any good, especially not the prices of the coins. Following the liquidations, Ethereum went down nearly 8% for the day and now trades at around $3,1777. Bitcoin also took a 2.5% hit in its price, and although it is not as bad as Ethereum, the coin fell below its $65,000 mark to trade at around $64,220.
However, the recent market drop has affected more than Bitcoin and Ethereum. The broader U.S. market also recorded steep losses on Wednesday. Another giant, the Nasdaq 100 index, fell by 3.65%, its sharpest loss since October 2022.
Of course, when giants fall, everyone notices and tries to figure out what brought them down. Analysts have done some digging and have tied the drop in the prices of Bitcoin and Ethereum to three major causes: tech stocks, the changing political landscape in Washington, and, of course, the bullish bets on U.S. spot Ethereum ETFs.
Despite the results of the impressive detective work from analysts and the current gloomy conditions of both coins, some analysts have said that they see things changing soon. QCP Capital, a Singapore-based crypto trading firm, have said, “We maintain a positive Ethereum outlook” and that “Bitcoin’s achievement of an all-time high two months post ETF launch provides a compelling precedent.”
More: Spot Ethereum ETF Trading Starts Altcoin Season
As it stands, Bitcoin and Ethereum are not in what you’d call a good place. But as the analysts have said, there is no reason to think they wouldn’t get out of this rut as soon as they have fallen into it. Both Bitcoin and Ethereum have seen worse days in their lifetime but they have bounced back every time, and that’s what makes them the giants they are.
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice of this sort, HODL FM strongly recommends contacting a qualified industry professional.
