$200 billion worth of crypto assets evaporate
Bitcoin fell more than 10% over the past day trading at around $36.3K on the FTX exchange, causing the crypto market to be in a sea of red.
Despite the crypto market losing nearly $200 billion in market value since yesterday, Crypto Twitter is not losing its collective mind as Bitcoin’s dominance is at 40.84%, up 0.65% from yesterday.
Global investors seem to have entered the year with a reduced appetite for risk, and so the correlations between speculative assets like crypto-assets and equities have risen, which has resulted in widespread losses.
The day’s liquidations amounted to about 221,382 investors. On Bitmex, the largest liquidation order was for XBTUSD worth $9.31 million.
The S&P 500 Index has declined by about 7% since its peak, while the Nasdaq 100 Index has dropped by 10%. Bitcoin is down roughly 45% from its all-time high of almost $69K.
Bitcoin’s risk profile was higher than those of altcoins, which led to their decline on Friday.
Market cap-wise, Ethereum, the world’s second-largest cryptocurrency, dropped about 13% over the past 24 hours, while AVAX and FTM fell by 14% and 16%, respectively.
Analysts still expect a short-term rebound despite the losses. It is expected that BTC will find a bid near the $35K mark, close to 50% from the top.
The market can bounce to challenge the $40K-$45K area in the short term, but as long as liquidity remains tight, the outlook is bearish
As of now, technical indicators suggest that bitcoin’s nearby support level is $35K, although a stronger support level at $30K might stabilize a deeper correction.
It is imperative that bitcoin holds its support as it sets the tone for the cryptocurrency market. Many altcoins are trading at their summertime 2021 lows, making Bitcoin crucial.