In a turbulent turn of events, the cryptocurrency market has been shaken by a sharp decline in Bitcoin prices. After a long period of notable gains and record highs, Bitcoin fell to a weekly low of $65,000, representing a major setback for investors.
At the time of writing, All Bitcoin numbers are painted red, It is trading at $65,710, losing value on the 24-hour and weekly time frames by 5.6% and 4.5%, respectively, according to data from Coingecko.
Just days after its previous low of $68,000, Bitcoin has fallen to its current level, a number not seen in a week, with bears continuing their bearish pressure.
Bitcoin plunging in the last 24 hours. Source: Coingecko.
Altcoins are also taking a beating
While Bitcoin bore the brunt of the downturn, altcoins were not spared the repercussions. Ethereum (ETH) and Binance Coin (BNB) were also seen. Big lossesAnd a loss of 10% of its value or more.
Dogecoin and Shiba Inu, two popular coins, saw even steeper declines, falling by 20% and about 30%, respectively. The broader altcoin market is mirroring Bitcoin's downward trajectory, adding to the unease among investors.
BTC market cap currently at $1.29 trillion. Chart: TradingView.com
Bitcoin: impact on market dynamics
The recent Bitcoin price correction has reverberated across the cryptocurrency landscape, reshaping market dynamics and investor sentiment. Liquidations escalate, with more than 151,000 traders facing margin calls in the past 24 hours, underscoring the extent of the turmoil in the market. Bitcoin's market dominance is evident as it represents the lion's share of total liquidations, highlighting its pivotal role in shaping overall market trends.
As a result of the decline in value, total market liquidations reached $426 million, with Bitcoin being the most affected.
Liquidation spree
The amount liquidated from the Bitcoin price over the past 24 hours has exceeded $104 million, with long-term traders losing the most money – they lost $86 million compared to $18 million for short sellers. Ethereum saw a total liquidation of $48 million, with $33 million going to long traders and $15 million going to short traders, as a result of the loss.
Siren sound analyzer
Meanwhile, market analysts like Markus Thelen, CEO of 10x Research, have sounded alarm bells, warning of further downside risks for Bitcoin. Thielen's forecast of a potential drop to $63,000 sends a wake-up message to investors, urging caution and wisdom in dealing with the current market environment.
His thoughts highlight fundamental concerns about Bitcoin's market structure, including low trading volumes and liquidity, exacerbating the risks of sharp price corrections.
Amid market turmoil, investors are grappling with the implications of Thielen's analysis and adjusting their strategies accordingly. The era of meme mania appears to be waning, prompting investors to reevaluate their positions and lock in profits while they still can.
Featured image from Kinesis Money, chart from TradingView
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