The cryptocurrency market has undergone a spectacular slowdown, losing $ 54 billion in just 24 hours. This sharp drop fell total market capitalization to 3.07 billions of dollars, sliding below the large threshold of 3.1 billions of dollars. While investors react to poor market performance, the Crypto Fear and Greed index fell to 35, signaling a general panic feeling. But what is behind this sudden market drop?
The current Bitcoin ETF outputs create uncertainty
One of the main contributors to the recent slowdown in the market is the ongoing outings of the Bitcoin (ETF) negotiated funds. On February 10, Bitcoin ETF experienced a withdrawal of $ 186 million, with major players like Fidelity, Grayscale and Investo seeing significant outings. The trend continued on February 11, with an additional $ 56.7 million, leaving these funds. While investors withdraw from Bitcoin, the sale has spread throughout the market, further supplying the slowdown.
The FNB Bitcoin provide a relatively safer avenue to institutional investors to acquire an exhibition to Bitcoin, but the current outings suggest that many lose confidence in cryptocurrency. This change of feeling is reflected throughout the cryptographic space, adding to the broader uncertainty of the market.
Liquidations exert additional pressure on the market
In addition to FNB outings, the market is also faced with an increase in liquidations. In the past 24 hours, $ 224 million in cryptocurrency posts have been liquidated, with $ 174 million from long positions, which are betting on price increases. Since merchants are forced to leave their positions due to the decline in the market, liquidations add more downward pressure, contributing more to market struggles.
The largest liquidation occurred on the exchange of Bordeaux, where a bitcoin position of $ 1.97 million was forcibly closed. These liquidations exacerbate the slowdown, because they force traders to sell their positions, which in turn lowers the prices and creates a vicious circle.
Altcoins undergo even greater losses
While Bitcoin certainly feels the effects of the slowdown, altcoins undergo even greater losses. In the past two weeks, the Altcoin market has lost $ 234 billion. Ethereum, XRP and Solana all fell between 5% and 8%, while coins like Dogecoin, Shiba Inu and Pepe experienced decreases from 5% to 10%. The Altcoin sector suffers the most, which amplifies the wider drop in the market.
Altcoins are known to be more volatile than Bitcoin, and as the flagship cryptocurrency faces a slowdown, many of these small parts see more steep drops. Consequently, the feeling of investors becomes more and more negative, many seeking to leave their positions rather than resisting the storm.
Bitcoin price levels to monitor
Bitcoin price has dropped by more than 3%, now oscillating about $ 95,969. The level of $ 90,000 is considered a critical support point for Bitcoin, and if it does not hold above this price, it could see other decreases, potentially at $ 93,625. Conversely, if Bitcoin can exceed the level of $ 103,000, it could resume a certain positive impetus and move the feeling of the market in a more optimistic direction.
For the moment, traders closely monitor these levels, as they will determine if Bitcoin can recover or if the downward trend will continue.
What is the next step for the cryptography market?
The cryptography market is faced with an intense volatility period and the prospects remain uncertain. FNB Bitcoin continues to see the outputs, and the increase in liquidations adds more pressure to Bitcoin and Altcoins. Despite this, the main levels of support for Bitcoin can give hope to a recovery.
Investors will have to be cautious and monitor the signs of market stabilization or new declines. The cryptography market is very volatile, and although there can be rebound opportunities, it could take some time before seeing a change of feeling.
As we progress, the emphasis will be placed on the question of whether Bitcoin can keep its levels of support and if Altcoins can recover from their recent losses. The next few days will be essential to determine the management of the market.
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