CryptoWires Report:
As Bitcoin prices plummeted to $55,000, panic selling in the altcoin market became increasingly evident. Ethereum and nearly all top ten altcoins saw declines of 10-20%, with ETH losing crucial support at $3,000.
Altcoin Market Collapse, Ethereum Faces Majority Liquidations
Amid significant volatility in the cryptocurrency market, Coinglass data reveals 221,704 traders were liquidated in the past 24 hours. The largest single liquidation order occurred on Binance’s ETH/USDT pair, amounting to $18.48 million.
Hourly charts indicate Ethereum’s liquidations surpassing Bitcoin’s. In the last hour alone, Ethereum’s total liquidation volume surged to $44.5 million, with a 24-hour tally of $107 million for ETH. Liquidation volumes for other altcoins also rose sharply.
Despite indications of an Ethereum spot ETF launching by late July, ETH prices have reacted negatively, closely mirroring the broader market adjustment.
Grayscale’s ETHE may see capital outflows. Traditionally trading at a discount of less than 2% in recent months, ETHE is now at a premium, raising questions about how many investors are waiting to sell post-conversion to an ETF.
Uncertainty in Post-Conversion ETHE Fee Structure. Fees may be significantly lower than anticipated or temporarily waived to attract investors to Grayscale’s mini-trust.
Fear and Uncertainty at Historic Highs
Amid steep declines in the cryptocurrency market, social media platforms are flooded with fear, uncertainty, and doubt (FUD). On-chain data provider Santiment reports hourly mentions of “sell” outnumbering “buy.”
This trend has occurred several times in the past 24 hours, with the ratio of negative to positive sentiment reaching its highest level since 2024. Santiment suggests this period of intensified negativity may present an opportunity for bold traders to adopt a contrarian strategy and buy into the market amid widespread anger and frustration.
Within the altcoin sector, the meme coin domain has seen even larger declines, with all top meme coins dropping between 17-25%. Whether these meme coins will rebound or if this marks the end of meme coin frenzy remains to be seen and is of significant interest.
ETH Price Decline Triggers Liquidations
Ethereum whales face liquidation as ETH drops 10.42% this week. Sell-offs in Bitcoin and Ethereum dampen market sentiment.
However, ongoing declines in Ethereum price have put a substantial number of Ethereum whales at risk of liquidation.
Potential liquidations of Ethereum whales could have far-reaching effects on the market.
Further sell-offs could exacerbate the current downtrend and lead to more liquidations.
Persistent selling pressure in Bitcoin also impacts overall market sentiment.
Asset sales by major holders and governments are expected to add further downward pressure.
