The crypto market is flashing deep red today, with significant losses being recorded across the board. Bitcoin and Ethereum traders have lost substantial amounts of money in the past 24 hours. Despite the downturn, one analyst remains optimistic, as the crypto market also received positive news yesterday.
Bitcoin and Ethereum Decline #
The crypto market is red today. In just one day, the market has lost 2.5% of its value, and major losses are currently being recorded among the top 10 largest cryptocurrencies.
Both Bitcoin and Ethereum have fallen sharply in the past 24 hours. Bitcoin has dropped nearly 2.5% at the time of writing, while Ethereum has fallen over 4%. This puts Bitcoin just above $90,000 and Ethereum around $3,200.
Price Drop Wipes €450 Million Off the Board #
The recent sharp price declines in the crypto market have left a trail of losses. This is particularly visible on the derivatives market, where contracts are traded that allow traders to speculate on price movements rather than directly trading cryptocurrencies.
According to data from Coinglass, approximately €450 million in positions have been liquidated on the derivatives market in the past 24 hours. This means traders have lost money. Liquidations occur when the price moves opposite to what a trader bet on, and they can no longer cover their position.
Of the total liquidations, €300 million came from long positions, where traders bet on price increases. This is not surprising given the sudden drop in the crypto market.
In total, 151,135 traders have been liquidated in the last 24 hours. The biggest losses were incurred with Bitcoin and Ethereum. For both coins, approximately €150 million in positions were liquidated.
Prices Drop Despite Bullish News #
The price drops come as a surprise to many, especially since the crypto market received bullish (positive) news yesterday. The U.S. Federal Reserve announced yesterday that it would lower interest rates, which typically has a positive effect on crypto prices. According to analysts, the falling prices are mainly due to the negative tone of the Fed in the speech that followed the interest rate decision. The Fed indicated that there will be only one interest rate cut next year.
Most analysts remain optimistic about the effect that the interest rate cut will have in the longer term. Merlijn The Trader shares on X that it will stimulate liquidity. “The crypto market feels this immediately,” according to the analyst.
MASSIVE:
The Fed is set to purchase $40B in T-bills over the next month. 🇺🇸
When the buyer of last resort steps back in, liquidity flows… and markets move.
Crypto feels this immediately.