In a volatile twist, the cryptocurrency market experienced a 0.82% decrease in value within the last day, descending to $1.2 trillion. This transpired as bitcoin (BTC) faced unstable conditions, dropping below the crucial $30K mark on Tuesday.
Crypto Market in Flux
Throughout this chaotic 24-hour period, leveraged digital asset traders observed a colossal liquidation of $106.88 million, impacting both short and long positions. Amid the slump on July 18, the crypto asset 1inch (1INCH) surfaced as the most severe casualty, losing nearly 16% of its worth against the U.S. dollar.
Amidst the turmoil, other digital assets encountered sharp declines as well. Terra classic (LUNC) suffered the most, plummeting over 6%, while solana (SOL) didn’t fare much better, also losing around 6% of its value. Although numerous coins have seen losses, some have managed to withstand the downturn. For example, bitdao (BIT) has increased more than 2% and chainlink (LINK) has gained 4.65% against the U.S. dollar.
Other frontrunners on Tuesday encompass sui (SUI), apecoin (APE), and xdc network (XDC). In terms of liquidations over the past hour, BTC, XRP, BCH, and ETH lead in liquidated positions. While crypto markets have undergone a widespread decline, this week’s Bitfinex Alpha Report states that bitcoin investors are “behaving more bullishly.”
The report highlights that onchain movements in Bitcoin indicate a transfer of supply from long-term holders (LTHs) to short-term holders (STHs), a cycle typically observed in bullish markets.
“This shift hints at new market entrants seeking quick profits and long-term holders cashing in on favourable prices. As this trend plateaus, it signals an early bull market stage where supply change occurs between these two cohorts,” the report elaborates.
What do you think about the recent market volatility in crypto markets during the last 24 hours? Share your thoughts and opinions about this subject in the comments section below.