CoinWire Report:
Source: Niuguolu Yao
In early Friday trading in Europe, the total market capitalization of cryptocurrencies fell over 8% in the past 24 hours, hovering around $2.09 trillion. Over the last four weeks, the cryptocurrency market has shrunk by approximately $600 billion, with Bitcoin (BTC) experiencing the largest decline.
According to the latest cryptocurrency market data as of this report, the price of Bitcoin dropped nearly 9% in the past 24 hours to around $54,000.
Massive Crypto Liquidation
With ongoing cryptocurrency sell-offs, nearly $700 million was liquidated in cryptocurrency derivatives trading in the past 24 hours, with a significant portion involving long-position traders. According to on-chain data provided by PerkShield, one whale has liquidated approximately 173,230 Ether, valued at around $10.7 million.
Following the sudden drop in Bitcoin, several other cryptocurrency giants were also forced into liquidation.
Primary Causes of Cryptocurrency Crash
The cryptocurrency market has been reacting to several negative events over the past few days. With further signals of economic uncertainty from the Federal Reserve, leadership changes have also occurred in the UK as the Labour Party secured a majority.
The cryptocurrency industry has been responding to sustained Bitcoin whale sell-offs initiated by the German government, which currently holds around 40,000 BTC. According to on-chain data analysis, Bitcoin whales have sold over 30,000 BTC in the past month.
Demand for the U.S. Bitcoin ETF has been declining over the past few weeks. Meanwhile, after more than a decade of effort, Mt. Gox has begun distributing over 100,000 Bitcoins to its customers, valued at over $7 billion.
What Comes Next?
Over the past month, the cryptocurrency market has been mired in bearish sentiment, which may persist in the coming weeks. However, some cryptocurrency analysts have compared the bullish cycle of 2024 to that of 2017, characterized by multiple corrections ranging from 25% to 40%.
Despite potential continued bearish trends in cryptocurrencies, Santiment points out that bold traders can benefit greatly from the current sentiment of anger and frustration among investors.
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