Bitcoin (BTC) It fell below the key $40,000 support level for the second time this month and fell as low as $38,642 in the middle of the Asian trading session. According to CoinGecko data, BTC has lost 8% in the last 24 hours, with the highest depreciation of 10%.
Native tokens of Tier-1 blockchains such as Solana (SOL) and Cardano (ADA) tumbled between 9% and 10%.
Stack Funds is on the subject: “crypto markets It has been sitting at a critical support level for some time. Macro market weakness causes sell-off in risky assets. Further continuation of this sentiment will likely see BTC trading in the mid-30s.”
According to CoinGlass, about $600 million in liquidations have taken place in the last 12 hours. Bitcoin had $250 million in liquidations, followed by Ethereum (ETH) with $163 million and Solana (SOL) with $10.9 million.
Binance owned $173 million in liquidations, 91% of which were long positions. Asia-focused exchange Okex followed with $170 million, mostly long-term.
The largest single liquidation order took place on Bitmex in the USDT-Bitcoin perpetual swap, which was valued at $9.91 million.
Delphi Digital wrote in its daily research note that investors are pricing in multiple rate hikes that significantly impact their risk holdings.
“This week’s talk is the latest jump in bond yields, primarily on U.S. Treasuries, as investors continue to position for an accelerated tightening schedule. The market is currently expecting at least 4 rate hikes this year. It’s the 5th this week. While many headlines have focused on nominal returns, the recent increase in real returns is more important to us, especially for non-revenue assets such as Bitcoin and gold.”
“Market sentiment is pessimistic and investors are in a wait-and-see mode,” Li Hui, Huobi’s research director, wrote in a note to CoinDesk, adding that “the decline was very fluid and there was no significant rebound after support. The price has been broken.” He shared his comment.
According to Levitas, options chain data shows $45,000-46,000 for Bitcoin and Ethereum (ETH) This move took the market by surprise as it showed a significant amount of open interest stuck between $3200-3300.
Tony Ling, partner at China-based Byzantine Capital, wrote in a note to CoinDesk that investors in China seem to continue to cash out given the economic slowdown in the country due to the recent waves of Covid and the upcoming Spring festival holiday. Ling also cited the tight monitoring of several OTC desks in the country as another reason why local retail investors want to exit the market.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.