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  • Crypto liquidations hit $200m amid Bitcoin dip

    Crypto liquidations hit $200m amid Bitcoin dip

    • Crypto liquidations rose to over $200 million in 24 hours as Bitcoin (ETH) and Ethereum (ETH) dipped.
    • Analysts are however bullish on BTC price as September looks poised to end on a green note.

    The crypto market saw over $200 million in crypto liquidations as Bitcoin slipped to near $64k amid fresh bear moves.

    According to data from Coinglass, the cryptocurrency market saw total liquidations in the past 24 hours surge by 128% to more than $200 million. This came as Bitcoin (BTC) fell 4% to near $63,100 on September 30.  

    24-hour liquidations

    Having posted a significantly better performance in September contrary to expectation with a spike to $66k, BTC retreated sharply to pull most altcoins lower. With Ethereum (ETH) also dumping to under $2.6k amid latest selling from the Ethereum Foundation, total longs rekt soared to $164 million.

    Shorts accounted for about $37 million in 24-hour liquidations at the time of writing.

    Crypto liquidation represents the process by which a trader’s position is forcibly closed when their margin account no longer supports an open position. This happens when a trader suffers substantial losses or has insufficient margin to keep the position open.

    According to Coinglass data, over 68,900 traders have had their positions liquidated in the past 24 hours. The largest single order to be liquidated happened on the crypto exchange OKX in the ETH-USD-SWAP, at a value $1.92 million.

    BTC bounce: Uptober is here

    Despite the decline in BTC price, bulls are likely to strengthen in coming weeks.

    The upbeat mood may be down to the fact that with hours to go, September looks poised to end with BTC up more than 7%. That’s barring a sharp meltdown – not entirely new to the market. Still, analysts are bullish.

    As crypto analyst Kaleo points out in the X post below, October and November have historically been ultra-positive for Bitcoin. If the trend continues, BTC will bounce hard in the coming months.

    Earlier on Monday, digital asset manager CoinShares published its weekly report. It showed crypto investment products registered a third consecutive week of inflows amid recent upside on interest rates cut. Bitcoin topped $1 billion as Ethereum broke a five-week streak of negative flows.

    BTC price hovered near $63,405 at the time of writing.

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  • These altcoins are poised for growth amid recent Bitcoin decline causing $83M liquidations

    These altcoins are poised for growth amid recent Bitcoin decline causing $83M liquidations

    • Bitcoin’s recent dip below $40,000 triggered $83 million in liquidations.
    • Cardano (ADA) stands resilient, leading in development and boasting a diverse ecosystem.
    • Optimism (OP) gains momentum with the rising adoption of L2 solutions.

    The cryptocurrency market is navigating turbulent waters as Bitcoin’s recent price decline triggered nearly $83 million in liquidations. The impact of this downturn is reverberating across the crypto space, presenting challenges but also opportunities for certain altcoins.

    However, amid this chaos, altcoins like Cardano (ADA), Optimism (OP), and the new Memeinator (MMTR) meme coin are positioned for growth.

    Bitcoin price decline sparks $83M liquidations

    The crypto market witnessed a significant setback as Bitcoin’s price nosedived to $38,555 on Tuesday, triggering a cascade of liquidations totalling $83 million in the futures market.

    Analysts attribute this sharp decline to several factors, including the recent approval of spot Bitcoin ETFs by the SEC. Traders, seizing the opportunity for profits, engaged in a sell-off that further fueled the downward trend.

    Additionally, experts suggest a connection between the Bitcoin price decline and GBTC redemptions by the bankrupt crypto exchange FTX.

    Cardano (ADA) emerges strong amid market downturn

    While the broader market faces headwinds, Cardano (ADA) stands out with a surge in development activity, surpassing major players like Ethereum. With a bustling GitHub and a diverse ecosystem comprising 9.45 million projects and 6,332 unique tokens, ADA remains resilient.

    Trading within the range of $0.418 to $0.724, ADA’s 10-day Moving Average at $0.504 and 100-day Moving Average at $0.452 provide stability. Despite market challenges, Cardano’s innovative prowess positions it as a potential growth asset, drawing attention with relentless progress.

    Optimism (OP) gains momentum amid expanding adoption

    Optimism (OP) experiences a notable uptick in value driven by increasing adoption of its layer-2 (L2) solutions. Boasting over 936,000 addresses currently in the money, OP’s sharp focus on crafting efficient and scalable Ethereum solutions is paying off.

    Trading between $2.61 and $3.01, with support levels at $2 and $2.4, OP reflects a bullish trend. As the platform’s user base grows and infrastructure solidifies, Optimism remains poised for sustained growth in the competitive landscape of layer-2 solutions.

    Memeinator emerging as an intriguing meme coin player

    Amid these market fluctuations, Memeinator has emerged as an intriguing player, fueled by AI technology and a disdain for sub-par memes. The MMTR token presale has raised an impressive $3,887,372, nearing the $4 million mark across thirteen stages.

    The MMTR token is going for $0.0197 in the current presale stage and is expected to rise to $0.0208 in the next stage. With the current stage more than 90% sold out, investors are angling to have a stake in this intriguing meme coin. If interested in the project, you could as well visit the Memeinator presale website to purchase your share of the MMTR tokens.

    Memeinator’s approach involves leveraging AI insights and innovative products like the Memescanner and the Memeinator Game.

    Conclusion

    While the crypto market grapples with external factors, including the recent Bitcoin price decline and global economic challenges, altcoins like Memeinator (MMTR), Cardano (ADA), and Optimism (OP) could offer an alternative opportunity for crypto investors.

    However, as investors explore opportunities, caution is advised, especially in the case of emerging projects like Memeinator, where risks and uncertainties warrant careful consideration.

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  • Crypto volatility back to FTX levels, with $791 million of liquidations in 4 days as SVB collapse rocks market

    Crypto volatility back to FTX levels, with $791 million of liquidations in 4 days as SVB collapse rocks market

    Key Takeaways

    • Crypto volatility is back up to levels last seen when FTX collapsed in November
    • $791 million of liquidations rocked investors between Thursday and Sunday
    • $383 million of longs were liquidated on Thursday and Friday, the largest 48-hour number of the year
    • News that deposits will be made whole at SVB propelled the market upwards late on Sunday, with $150 million of short sellers liquidated as Bitcoin retook $22,000
    • Despite Fed move stablising prices and 2023 showing a bounceback, the long-term implications for the crypto market are negative here and should concern investors

    For once, it’s not crypto doing the collapsing. Trad-fi was feeling left out of the party, evidently, as the banking sector wobbled in a big way this weekend. 

    Silicon Valley Bank (SVB) is no more, in what amounts to the largest collapse of a US bank since 2008, when Lehman Brothers pulled its best Satoshi Nakamoto impression and disappeared into the ether (pun not intended). 

    While the drama may have centred in trad-fi, crypto bounced around aggressively over the weekend as a variety of knock-on effects rumbled. SVB was a crypto-friendly bank, as was Silvergate, which was announced to also be winding down last night. 

    This, as well as the fact that the entire financial markets wobbled, meant crypto faced a storm. We have dug into some of the movements here at https://coinjournal.net/ to sum up the carnage. 

    Liquidations 

    With violent price swings, liquidations were inevitable. Longs got caught out badly on Thursday and Friday, as the Bitcoin price fell south of $20,000. 

    There were $249 million of long liquidations across exchanges on Thursday, with Friday bringing an additional $134 million. The $383 million of long liquidations was the most in any 48 hour period this year. 

    Volatility

    Obviously, liquidations stem from volatility. Looking at Bitcoin to dissect the extent of the movements, the volatility is now back up to levels last seen when FTX collapsed in November. 

    The chart below shows that the metric had been rising steadily, before SVB going poof kicked it back up to a mark 3-Day volatility mark of 50%, last seen when Sam Bankman-Fried’s fun and games were revealed to the public.

    “We have been seeing relatively muted action in the crypto markets since the FTX collapse last November” said Max Coupland, Director of CoinJournal. “The SVB event served to kick volatility back up to levels we last saw amid all the crypto scandals of last year – not only FTX, but Celsius, LUNA etc. The difference with this event is that the crash was sparked in trad-fi for a change”.

    Crypto bounces back

    But all is well that ends well. Or something along those lines, as despite SVB going under, the Fed announced last night, after a weekend of chaos, that all deposits at SVB would be made whole. 

    The bail-out (if you can call it that, as SVB is still going under) quelled up fear in the markets that the issue could become systemic. Crypto roared back, with Bitcoin spiking back up to $22,000 at time of writing. And this time, it was shorts who got caught offside, with $150 million liquidated across the market Sunday. 

    Perhaps the biggest winner of all was the world’s second-biggest stablecoin, USDC. 25% of the stablecoin’s reserves are backed by cash. Crucially, 8.25% ($3.3 billion) of reserves were (are) trapped in SVB, with the stablecoin dipping below 90 cents on several major exchanges over the weekend. 

    At press time, the peg has been largely restored as the crypto market bounces upward, with Bitcoin north of $24,000.  

    What next for crypto?

    And so, the immediate storm appears to have been weathered in cryptoland. 

    Nonetheless, the past few days present as yet another crushing blow. Three of the big crypto banks – SVB, Silvergate and Signature – are now no more. These banks allowed crypto firms to offer on-ramping from fiat into crypto 24/7 through their settlement services, in contrast to the regular banking hours of the banking sector. 

    Liquidity and volume thus may dip even further in the crypto market, after a year that has already seen volumes, prices and interest in the space freefall. 

    Despite the Fed stepping in to shore up deposits and hence stabilising the stablecoin market and wider crypto prices, the long-term future of the cryptocurrency industry in the US has taken another heavy body blow this weekend. And with the US being the biggest financial market in the world, that is very bad news. 

    Coupled with the regulatory clampdown by the SEC in the last few months, 2023 has followed 2022 in creating a more hostile and bearish environment for the sector at large. 

    So crypto investors may have seen a bounceback in prices in the last few months, but this appears to be largely macro-driven correlation with the stock market, as the underlying events in the industry – regulation, more bankruptcies, and crypto-friendly banks shuttering – have not been positive. 

    If you use our data, then we would appreciate a link back to https://coinjournal.net. Crediting our work with a link helps us to keep providing you with data analysis research.

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  • Bitcoin’s break to $25k was fueled by massive liquidations

    Bitcoin’s break to $25k was fueled by massive liquidations

    • Bitcoin price broke above $22,500 to new highs above $25,000 amid the hunt for short stops and liquidations.
    • The move to $25k resulted from short liquidations of over $155 million.
    • While price could retreat to $24k, Bitfinex analysts say recent price movements could be indicative of a bottom.

    Bitcoin price rose above $25k briefly before slipping back under the key psychological and technical area. 

    According to analysts at crypto exchange Bitfinex, the retreat to this week’s lows comes after a 10% upswing and a green weekly candle. However, the benchmark crypto did not hit a crucial daily candle close at that zone.

    Even then, it is likely the price movement is another major step towards “the latter stages of a gruesome bear market,” the analysts noted in a report.

    BTC spike to $25k fueled by massive liquidations

    Bitfinex analysts also suggest that Bitcoin’s breakout from the $22,500 price level to highs above $25,000 was fueled by the massive liquidations recorded over the past few days.

    Commenting on BTC price outlook and what could lie awake in coming weeks, they said in a statement shared with CoinJournal.

    “Over the past two weeks, the BTC price has been hunting both over-leveraged long positions, as well as liquidating over-eager shorts of over $155 million. It reached an eight-month high of $25,000 in the process. Another sharp but short-lived pullback caught out some short-term bullish speculators off-guard who were betting on a push to the upper $25,000-$26,000s on Thursday, February 16th, as evidenced by a spike in long position liquidations on that day. Profit-taking in the wake of the recent rally and a stop-run on those who had gotten overly aggressive chasing the upside might well send Bitcoin back below $24,000 in the week ahead.”

    On what happens next, the analysts say price action as has played out recently has historically, resulted in ranged price movement. This is due to the action that has seen both longs and shorts have been simultaneously wiped off.

    “The most probable move going forward is to scale out of positions partially and wait for the range to form without a strong directional bias,” they explained.

    In a tweeted prediction for Bitcoin price, YouTuber and crypto analyst Sheldon The Sniper says Bitcoin could go to $28k or revisit support at $21k. He shared the outlook above as BTC price continued to hover around $25,683 at 2:15 pm ET on Tuesday.

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