The crypto market has witnessed a massive dump in the last 24 hours, with liquidations reaching $1 billion. Over 278,000 traders who opened either long or short positions have been affected. Per CoinGlass’ data, short liquidations account for $148 million of the $1 billion, while long liquidations stand at $852 million.
The most affected trader had a long position on the Huobi crypto exchange. They got liquidated for $27 million after Bitcoin dropped below $50,000 on Monday morning. However, the largest crypto by market cap has recovered to trade at $52,893 as of this writing. But it’s still down 16% in the past 24 hours.
Ethereum, on the other hand, is down 18.5% to $2,267. Data on TradingView shows that the second-largest token had bottomed at $2,172 during the European trading hours.
The top two cryptocurrencies are not the only ones whose prices are dumping. All the leading ten assets by market valuation are down by over 10%. BNB is currently changing hands for $421, down 19%. Solana has dropped 20.4% to $114.83, while XRP, Toncoin, and Dogecoin have plummeted by 21% to trade at $0.44, $4.99, and $0.08414, respectively.
Why Are Cryptocurrencies Dumping?
Prominent intergovernmental blockchain expert Anndy Lian has attributed the current downtrend to the growing interconnectedness between crypto and traditional financial markets. He argues that disruptions in the stock markets have affected crypto.
Moreover, Lian says a recent report, which indicated that the unemployment rate in the United States had surged to 4.3%, has prompted many to believe that there might be a recession in the coming months, which could discourage the Federal Reserve from cutting interest rates this year.
Research Firm Anticipates Bearish Move to $42K
Meanwhile, 10x Research has predicted that Bitcoin could reach $42,000 if the $48,000 support level breaks. The research company is also bearish on Ethereum. It has predicted a move to $1,900 if Bitcoin trades below $48,000.
According to 10x Research, cycle analysis, on-chain data, and economic weakness are the main factors expected to fuel a further downtrend.
Bitcoiner Tristan Dickinson, on the other hand, isn’t expecting a massive crash in the next few weeks. In an X post, he said on Monday that Bitcoin is likely to consolidate in August and September, arguing that the two months have historically been weak.
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