The overall crypto market recorded total liquidations of $682.05 million in the last 24 hours.
The market cap has hit a monthly low of $1.98 trillion according to CMC data.
The crypto community amidst its expectancy for bull runs has received shock waves this past week. In an additional remark, the crypto market recorded a $110 million liquidation in under an hour, during the Asian morning hours of July 5. With such high liquidation rates, the market has dipped into a bearish cycle.
Notably, when analyzing the cause for such an alarming outflow of assets, it indicates the leading cryptocurrencies’ current price dips. The largest cryptocurrency, Bitcoin holds investor attention, but for its bearish runs. With the top cryptocurrency dipping in price, the altcoins have followed with their own price dips. This has caused a major tumult in the sector, with a significant decline in market cap.
Moreover, in the last 24 hours, according to CMC data, the market cap recorded an 8.57% decline. Additionally, the value has dipped below the $2 trillion mark hitting a monthly low on Friday. The price dip and subsequent decrease in capitalization fueled selling pressures among investors. This selling pressure and the mounting fear sentiment have resulted in the liquidation frenzy.
Alarming Crypto Liquidations, What Do They Suggest?
According to Coinglass data, the last 24 hours recorded a total liquidations of a notable $682.05 million. This liquidation has resulted in more than 23 thousand individual traders being liquidated in the crypto market.
Total Liquidations Chart (Source: Coinglass )
When observing the outflows in particular cryptocurrency, Bitcoin depicts $226.81 million in liquidations. According to on-chain reports, this is BTC’s second-largest liquidation after the FTX collapse. ETH showed $166.50 million while others recorded $106.43 million. Meanwhile, Lookonchain reports discussed the liquidations of individual traders, one wallet holding ETH worth $12.2 million was liquidated in the past hour.
On the other hand, market analysts have stated mixed opinions about current market conditions. While some analysts have referred to current dips and analyzed causes, others hold an optimistic opinion that the market will show recovery in the coming days.
Amidst the price drop and liquidation frenzy, the German government’s selling of Bitcoin and Mt.Gox’s transactions are key factors for the digital asset’s price dip. Meanwhile the US spot Bitcoin ETFs have also recorded outflows due to the bearish crypto market trend.
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