Blood in the Streets? Crypto Market Sees $800 Million in Long Positions Liquidated Amid $400 Billion Market Cap Drop

by

As a researcher with experience in the cryptocurrency market, I find the recent events in the space quite concerning. The forced selling of over $800 million worth of long positions within three days is a significant development that has not been seen since April, according to CoinGlass data. This sell-off came during a broader market downturn, with the total cryptocurrency market capitalization dropping by over $400 billion in a month and over $65 billion in the last 24 hours.

In the cryptocurrency market, over $800 million value of long positions have been forcibly sold off in the last three days, resulting in the most significant liquidation episodes since April, as indicated by CoinGlass statistics.

As a crypto investor, I’ve experienced firsthand the recent market turbulence that led to significant liquidations. Over the past month, the total cryptocurrency market capitalization plunged by over $400 billion, and in just the last 24 hours, it dipped further by more than $65 billion. The price of Bitcoin took a hit, dropping below the $53,000 mark before attempting to rebound.

At present, Bitcoin is priced at approximately $455,200 in current markets, while Ethereum has dipped below the $3,000 threshold to trade around $2,950. Notably, other prominent cryptocurrencies such as BNB, Solana, XRP, TON, and DOGE experienced significant declines of over ten percent during the previous week. Among them, DOGE suffered a substantial loss, with 22% of its value disappearing within that timeframe.

According to Bloomberg’s report, Bitcoin miners are still dealing with the financial consequences of the halving that occurred in April. This event reduced the number of Bitcoins they receive as a reward for mining each block by half. Consequently, some miners have been compelled to sell part of their Bitcoin stash.

As an analyst, I’d rephrase it as follows: The miners are selling Bitcoin concurrently with the German government, which has been transferring its Bitcoins from a wallet to cryptocurrency exchanges. Initially, the German government possessed approximately 50,000 BTC that was previously seized from the administrators of Movie2k.to, an inactive film piracy platform over a decade old.

As a researcher studying the crypto market, I’m excited to share that Mt. Gox, the once-defunct cryptocurrency exchange, has recently initiated the process of returning digital assets to its creditors. This marks the end of a decade-long wait for users who have been eagerly anticipating the resolution of this prolonged saga.

As a crypto investor, I’ve noticed that this exchange used to have a significant role in Bitcoin trading back in the day. However, it experienced a major setback when a security breach occurred in 2014, leading to an estimated loss of approximately 740,000 BTC. Sadly, they went bankrupt as a result. Fortunately, some of the lost coins have been recovered and will be returned to creditors. Analysts predict that these creditors might sell their coins in the market once they’ve met the ten-year waiting period.

As a researcher examining the latest mining industry trends, I’ve discovered some intriguing insights based on data from CryptoQuant. Miners have experienced a significant decrease in daily revenue, which now stands at approximately $26.5 million – representing a 75% drop since the recent halving event. Moreover, transaction fees earned by miners have drastically declined and currently account for only around 3.7% of their total revenue. Previously, in early April, transaction fees constituted a much more substantial 75% share of their overall income.

As a researcher investigating the Bitcoin mining landscape, I’ve come across an interesting observation from Le Shi, who leads trading at market maker and algorithmic trading firm Auros. According to him, the Bitcoin price range between $51,000 and $52,000 holds significant importance because a large number of miners are currently reaching their break-even points in terms of profitable mining operations.

Read More

2024-07-05 15:33