After peaking at $43,800 earlier today, Bitcoin saw a minor decline to $42,200 in the early Asian session, representing a nearly 4% decline. Ether, like most altcoins, saw a decline of nearly 5% to $2,230.
A significant liquidation of long positions on centralized exchanges resulted from this downturn. More than $94 million in bitcoin positions were liquidated as a result of the volatility, with long positions accounting for the majority ($85 million).
According to CoinGlass data, the entire cryptocurrency market saw $320 million in long positions liquidated, which went toward the $360 million in liquidations across multiple exchanges.
Liquidations in the derivatives markets are the result of a trader’s position being forcibly closed because there aren’t enough funds to cover losses. This circumstance emerges when the market.
The founder of data provider Parsec, Will Sheehan, reported a spike in DeFi liquidations as well, valuing them at about $2 million. He claimed that this is the first time that “retail has been getting leveraged on-chain” in over a year.
According to CoinGlass data, funding rates for cryptocurrencies such as ether, bitcoin, and others fell below +0.01% today, from over +0.1% over the previous few weeks. This indicates a decrease in the demand for leveraged longs in the derivatives markets.
Analysts continue to have a positive view of cryptocurrencies through 2024. By the fourth quarter of the following year, experts at the investment management company VanEck forecast that Bitcoin will reach new all-time highs. Anticipations for the impending Bitcoin halving event and the possible introduction of a spot exchange-traded fund (ETF) are the main sources of this optimism.
