Long BTC position liquidations rose above $164 million in the past 24 hours as prices plummeted to multi-month lows. Analysts point to a decline in demand from US-based investors as the main reason for the recent price correction.
A total of $166 million in bitcoin positions were liquidated in the past 24 hours. The entire crypto market totaled more than $455 million in liquidation during the same period. According to Coinglass data, of these combined cryptocurrency liquidations, the majority – about $388 million – were long positions.
Bitcoin is precariously hovering around the $57,000 mark, down nearly 8% in the past 24 hours and is trading at $57,378 at the time of writing, according to TradingView. The price of ETH fell 6.2% to $2,870 during the same period.
Demand declines
According to this week's CryptoQuant market report, the recent bitcoin price correction could be due to slowing demand growth for the asset.
The report observes slower growth in bitcoin balances of perpetual holders and large whale investors in the spot market. “Bitcoin whale demand growth peaked at a monthly growth rate of 12% in late March and has now slowed to 6%,” CryptoQuant analysts said. Price increases are typically driven by faster bitcoin demand from large investors.”
The report added that the weakness in bitcoin demand is also evident in Coinbase premiums, which are said to have been trending downward since early March, falling below zero over the past few weeks. “When the Coinbase premium drops below zero, it means bitcoin prices in the US are lower than outside, indicating lower demand for bitcoin from US investors,” CryptoQuant added.
The decline in demand in the United States is also evident from indicators showing that the US bitcoin spot ETF market is on track to experience its first month of net outflows since its launch on May 11. first.
New bitcoin price target
CryptoQuant analysts have set a new short-term price target for bitcoin between $55,000 and $57,000, noting that the current bitcoin price is already below traders' cost basis. “From a short-term valuation perspective, the price could target $55,000 – $57,000,” analysts said. This is 10% below traders' current cost base, at $63,000, which is the last level of support for prices in bull markets.”
The report also highlights an increase in bitcoin supply, as bitcoin miners have increased their sales activity over the past month. Specifically, the average daily miner sale is observed to have increased to its highest level since early January.
According to Coingecko data, bitcoin's dominance decreased slightly over the past day to 50.3%, while ether's dominance increased slightly to 15.7%. The global cryptocurrency market capitalization has decreased by 6.5% in the past 24 hours and currently stands at $2.25 trillion.
The GM 30 index, which represents the top 30 cryptocurrencies, fell 6.8% to 118.77 during the same period.
Source: https://tapchibitcoin.io/hon-450-million-do-la-bi-thanh-ly-khi-bitcoin-jam-ve-57k-trong-boi-canh-nhu-cau-giam-tai- my.html