Bitcoin’s Ugly Week: $180 Million in Liquidations as Crypto Market Bleeds
The crypto market has taken a drastic turn for the worse, with bitcoin plummeting to $65,000 and altcoins suffering losses of up to 20%. The sudden downturn has resulted in a staggering $180 million in liquidations across all crypto assets, with most of these being long positions betting on higher prices.
A Sudden Reversal of Fortunes
Just a few days ago, analysts and market participants were anticipating a breakout for bitcoin to new record highs, supported by softer inflation data and a slower pace of economic growth. However, these hopes were quickly dashed as attempts at rallies were sold off, leaving bitcoin stuck in its sideways range.
Bitcoin’s price chart shows a sharp decline
The Federal Reserve’s decision to project only one rate cut for this year, less than its previous forecast, has also contributed to the downturn. This has dashed investor hopes for looser monetary policy this summer. Political uncertainty in Europe, with a snap election being called in France, has also pushed the U.S. dollar index (DXY) higher against other major currencies, putting pressure on bitcoin.
Altcoins Take a Beating
The broader crypto market has been hit hard, with the CoinDesk 20 Index shedding almost 12% week-over-week. Ether (ETH) has dropped to $3,400, losing over 10% during this period, while native tokens of rival layer-1 networks Solana (SOL), Avalanche (AVAX), Cardano (ADA), and Near (NEAR) have suffered declines of 15%-20%.
The cryptocurrency market has taken a hit
The swift tumble has liquidated nearly $180 million of leveraged derivatives trading positions across all crypto assets over the past 24 hours, most of them longs betting on higher prices. This week’s shake-out has seen a total of over $870 million in liquidations, flushing excess leverage from markets.
A Tough Week for Crypto
The crypto market’s sudden downturn has left many wondering what’s next. Will bitcoin be able to recover from this setback, or will the bearish trend continue? One thing is certain - it’s been a tough week for crypto.
Bitcoin mining has also been affected
Bitcoin also struggled with increased selling from miners and profit-taking from long-time holders near the $70,000 area, weighing on the broader crypto market.
