Currently, the global cryptocurrency market is experiencing a severe downturn. The trend of increasing cryptocurrency liquidations poses a threat to Bitcoin and altcoins.
Here is an overview of the cryptocurrency market crash.
Bitcoin Market Crash
As of this writing, the price of Bitcoin is $54,541. Yesterday, Bitcoin closed at around $57,031. The price of Bitcoin has fallen significantly over the past four days from $62,829. This week, the price of Bitcoin has fallen by 11.5%. On June 29, the price of Bitcoin was close to $60,920.
On July 1, the Bitcoin price reached a weekly high of $62,793. In the past 24 hours, the price has fallen by nearly 7.3%. On the Bitcoin hourly chart, selling pressure is strong. At least three long red candlesticks have been formed so far. Although in the first few hours of the day, the selling pressure was almost equal to the buying pressure and buyers had a slight upper hand, later the sellers took control of the market.
Ethereum price drops sharply
Like Bitcoin, Ethereum’s price has also fallen significantly over the past four days. This week, Ethereum’s price has fallen by 16.3%. On July 2, Ethereum’s price was around $3,417. As of the time of writing, Ethereum’s price is still $2,868.8. On June 29, Ethereum’s price was around $3,372.
Despite reaching a weekly peak of $3,441 on July 1, it has been weakening since then. Several long red candles have appeared on Ethereum’s hourly chart. The longest candle shows a drop from $3,093 to $2,930. In the past 24 hours alone, the price has fallen by more than 10.2%.
The current market suggests that sellers have the upper hand. It is speculated that the sharp drop in prices below $3,000 has fueled panic selling. According to a report, over 221,704 traders have been liquidated in the last 24 hours alone. The report added that Ethereum liquidations have surpassed Bitcoin. Ethereum liquidations have reached $44.5 million in the last hour alone and over $107 million in the last 24 hours, the report said.
The reason for the sudden drop in ETH’s price is unclear. One possible reason could be issues with the Grayscale ETHE fund, which used to be cheaper than the actual Ethereum it represented but is now more expensive. This change has investors concerned as they are unsure how much they will pay in fees once the fund is converted to an ETF. I think the uncertainty is making some investors consider selling their holdings.
Memecoin Industry Crash: What You Should Know
Almost all of the top ten memecoins have dropped significantly in the past 24 hours. A report shows that the top ten meme coins have dropped between 17% and 25%. Dogecoin, Shiba Inu, and Pepe have dropped by 15.5%, 14.9%, and 16.2%, respectively. Dogwifhat, Bonk, and FLOKI have dropped by 11.2%, 12.1%, and 15%, respectively. Brett has dropped by as much as 21.6%. BOOk OF MEME has also seen a significant drop of 17.9%. Mog Coin reports a drop of 8.0%.
There are only a few weeks left until the launch of the Ethereum spot ETF. Whether the cryptocurrency market will rebound remains to be seen.
preventive solution
Although the cryptocurrency market crashed today, I think investors should look for the best cryptocurrencies to buy instead of panic selling. Calm down and don't trade with emotion. I maintain yesterday's view that Bitcoin will bottom out at 52,000 this time. You can enter the market with all your strength at this point, and all coins are fine. For those who have already entered the market, you must do a good job of risk control. If Bitcoin really reaches 52,000, can you maintain your position? If there is a risk of liquidation, you need to reduce your position and reduce forced liquidation. It is better to cut a small part of your position than to return it to zero. Don't fall on the eve of a big bull.
