CoinWired Report:
Currently, the global cryptocurrency market is undergoing a severe downturn. The increasing trend of crypto liquidations poses a threat to both Bitcoin and altcoins.
Here is an overview of the cryptocurrency market collapse:
Bitcoin Market Collapse
As of the time of writing, the price of Bitcoin is $54,541. Yesterday, Bitcoin closed at around $57,031. Over the past four days, Bitcoin has seen a significant drop from $62,829. This week, Bitcoin’s price has fallen by 11.5%. On June 29th, Bitcoin approached $60,920.
On July 1st, Bitcoin reached a weekly high of $62,793. In the past 24 hours, the price has dropped by nearly 7.3%. Selling pressure remains strong on the hourly Bitcoin chart. At least three large red candles have formed so far. Although buyers had a slight edge in the initial hours of the day with nearly equal pressure, sellers later took control of the market.
Ethereum Price Plunge
Similar to Bitcoin, Ethereum has also experienced a steep decline over the past four days. This week, Ethereum’s price has dropped by 16.3%. On July 2nd, Ethereum’s price was approximately $3,417. At the time of writing, Ethereum’s price stands at $2,868.8. On June 29th, Ethereum was priced around $3,372.
Despite peaking at $3,441 on July 1st, it has since weakened. Several long red candles have appeared on the hourly Ethereum chart. The longest candle shows a drop from $3,093 to $2,930. In just the past 24 hours, it has fallen by more than 10.2%.
Current market conditions indicate a predominance of sellers. It is speculated that the sharp drop below $3,000 intensified panic selling. According to reports, over 221,704 traders have been liquidated in the past 24 hours alone. The report adds that Ethereum’s liquidations have exceeded those of Bitcoin. Within the last hour alone, Ethereum’s liquidations reached $44.5 million, surpassing $107 million over the past 24 hours.
The reason behind ETH’s sudden price drop remains unclear. Issues with the Grayscale ETHE fund could be a factor. The fund historically traded cheaper than the actual Ethereum it represents, but now commands a higher price. This change has unsettled investors uncertain about the costs they might incur once the fund converts to an ETF. Uncertainty appears to be prompting some investors to consider selling their holdings.
Memecoin
In the past 24 hours, nearly all of the top ten Memecoins have seen significant declines. A report indicates that top meme coins have dropped between 17% to 25%. Dogecoin, Shiba Inu, and Pepe have fallen by 15.5%, 14.9%, and 16.2% respectively. Dogwifhat, Bonk, and FLOKI have dropped by 11.2%, 12.1%, and 15%. Brett has seen a decline of 21.6%, while BOOK OF MEME dropped by 17.9%. Mog Coin reported an 8.0% decline.
The launch of Ethereum’s spot ETF is only weeks away. Whether the cryptocurrency market will rebound remains to be seen.
Strategies to Consider
Despite today’s cryptocurrency market crash, I believe investors should seek out the best cryptocurrencies to buy rather than engage in panic selling. Stay calm and avoid emotional trading.
Maintain yesterday’s viewpoint that Bitcoin’s bottom may be at $52,000, where full entry is advisable across various coins.
For those already in the market, ensure robust risk management. If Bitcoin truly reaches $52,000, assess whether your positions can be sustained. Reduce exposure if there’s risk of liquidation to minimize forced closures. Trimming a small portion of your position is better than losing it all just before a major bullish trend.
