Bitcoin and Ethereum down; large divestments in all markets

Bitcoin (BTC), Ethereum (ETH) and much of the crypto market traded significantly lower today as liquidations of leveraged long positions amplified the price drop. The crash comes as the market prepares for yet another rise in US inflation, following a price jump yesterday after details of a crypto-executive order were released in the US.

Source: Adobe / Kuleshin

As of press time, nearly $ 43 million in leveraged Bitcoin-long positions had been liquidated in the 12 hours between midnight and noon UTC time Thursday. It is noteworthy that the liquidations of long positions followed a similar level of liquidations on the short side yesterday, almost USD 63 million in short positions.

Long position liquidations across the entire crypto market reached $ 108 million in the same 12 hours today, according to market surveillance data Coinglass.

12-Hour Bitcoin Futures Liquidations:

Source: Coinglass

Along with falling cryptocurrency prices, futures on the US S&P 500 stock index pointed towards a lower opening on Wall Street after a positive day yesterday.

The price of gold also continued to fall in the early hours of today after hitting yesterday from a high of $ 2,070, only $ 5 from the highest level ever for the precious metal. At the time of the press release, however, the gold had again turned from the lowest levels of $ 1,970 to $ 1,997.

Yesterday, Bitcoin and cryptocurrencies recorded a sharp price increase after the US president Joe Biden signed an executive order on digital assets, which the market saw as a positive signal from the US government in their efforts to regulate crypto.

Today’s fall also comes as the market awaits US inflation data for February. The figure is expected to come in at 7.9% year-on-year, down from 7.5% the previous month, which already marked the highest inflation in 40 years.

“We expect high overall inflation in February data tomorrow,” with “one of the main reasons” are higher energy prices, said Jen PsakiWhite House spokesman at a news conference yesterday.

Dylan LeClairco-founder of the consulting firm 21. Paradigm specializing in Bitcoin, said yesterday’s derivative-led rally had no impact in terms of price or volume. Short-term traders who were trying to get out of their positions so “lead the market”, said declared Mr. LeClair on Twitter.

“A trigger that has affected markets is the consumer price index; this will also be affected by next week’s rate hike and will essentially determine how much consumers will be affected in terms of loans, investments, savings, job prospects and prices of goods and services. , “said Eliezer Ndingaresearch director at index token issues Amunin a comment shared with

He added that this led to the fall in prices seen over the past week, combined with an influx of raw materials such as oil and wheat.

Looking at the month of February, the exchange crack said in its latest market review for the month that Bitcoin’s performance is “a slight disappointment”, given historical data showing that February was among the best performing months.

With a return of 11% for the month, February this year was the fourth worst-performing month in Bitcoin’s history, which has now underperformed its historic monthly performance for four consecutive months, Kraken added.

In March, average monthly BTC returns are 8%, while median returns are -6% according to their data.

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