Summary Points
- Crypto markets nosedived, losing $140 billion in 24 hours and hitting multi-month lows with total cap dropping to $2.37T.
- Heavy liquidation of $1.63B, mainly long positions in Bitcoin and Ethereum, signals rising trader fears and potential cascading sell-offs.
- Bitcoin whales and sharks dumped 24,602 BTC last week, while retail micro traders barely accumulated, fueling bearish sentiment.
- Bitcoin fell 6% to $65,300, and ETH dropped to a 4-month low at $1,850, with analysts warning of further declines amid extreme market fear.
Crypto Markets Experience $140 Billion Drop as Bitcoin Falls 7% to $65,000
Crypto markets plunge sharply.
Over the past day, cryptocurrencies lost about 4.9%, equaling roughly $140 billion. Total market capitalization dropped to $2.37 trillion, its lowest point since early April. During this decline, around 265,000 traders faced liquidations, amounting to about $1.63 billion. Most of these liquidations affected traders betting on rising prices, especially in Bitcoin and Ethereum.
Joao Wedson, founder of Alphractal, warned that many traders could be caught off guard soon. “Liquidation levels below the current price are likely to hit many traders in the next hours,” he said. As prices approach these levels, cascading orders across exchanges could accelerate the decline. Traders are advised to tighten stop losses and monitor price movements carefully.
Key players sell off holdings.
Recent data from Santiment shows that major Bitcoin holders, known as whales and sharks, have been selling aggressively. They unloaded approximately 24,602 BTC in the past week. Meanwhile, small traders holding less than 0.01 BTC have increased their holdings slightly. Social media sentiment reveals widespread fear among retail traders, driven by Bitcoin’s lowest prices since April 5. Analysts link this sell-off partly to strategies by prominent figures like Michael Saylor. Gold advocate Peter Schiff criticized Bitcoin’s resilience, suggesting the market remains overly complacent. If Bitcoin falls below $50,000, some experts predict a further drop below $20,000, which could test long-term investors’ confidence.
Bitcoin and Ethereum hit new lows.
Bitcoin recently dropped 6%, reaching around $65,300 during Asian trading hours. It has not recovered from this two-month low and remains near $66,500 at the time of writing. This marks a decline of nearly half from its October peak. Ethereum fared even worse, losing 7% and dropping to about $1,850 — its lowest in four months. Analysts warn that further declines are possible, and the recent trend suggests prices may continue to fall.
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Disclaimer
This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. This information may be outdated or incomplete. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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