The cryptocurrency market flashes red today, total market capitalization lowering from 3% to around 3.1 billions of dollars on February 24.
Several concrete factors have contributed to the last drop in cryptography prices, including:
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The cryptography market is still in shock from the $ 1.4 billion exchange exchange.
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Investors are in risk mode in the middle of continuous outings of cryptographic investment products.
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Strong increase resistance stifles recovery efforts in the global market capitalization of cryptography.
Ethereum conducts the market crisis
Today’s drop in today’s cryptr market is part of a correction that started on February 21, when the Bybit cryptocurrency schpto was hacked for more than $ 1.4 billion in ETH and ETH tokens in the greatest cryptographic robbery.
The sale continues on February 24, in particular:
Significant liquidations on the derivative market are aggravated.
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The sale has triggered leverages, with more than $ 268 million in cryptographic liquidations recorded in the last 24 hours.
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Long stretching positions of ETH totaling $ 40.13 million were also liquidated by day.
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This exceeds $ 21.4 million long liquidations in the BTC lever effect position.
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More than 126,620 traders were liquidated during the last day, the greatest liquidations that take place on OKX involving a
Ethusdt Exchange worth $ 1.41 million. -
A predominance of long liquidations suggests that the cryptography market has been overvalued on the bullish side.
Despite the current low-costly feeling on the market, the trading platform for cryptocurrency options QCP Capital claims that cryptographic prices and implicit volatility displayed moderate reactions compared to the collapse of the FTX in 2022.
This “underlines the growing maturity of the cryptographic landscape,” said QCP Capital in a telegram message, adding:
“Bybit’s ability to quickly obtain a bridge loan to cover the liquidity gap during a critical period highlights the resilience of the loan space and the sufficient liquidity available. This sector has regularly been restored since 2022 and had a major peak before the American presidential election of last year. »»
Investors continue to get rid of the crypto
The continuous correction of the cryptographic market is aligned with the capital outings of cryptographic investment products.
The main dishes to remember:
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Digital asset investment products see outings for the second consecutive week
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Withdrawals totaled $ 508 million during the week ending on February 21, according to the Coinshares report.
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This indicates that institutional investors have reduced their exposure to digital assets.
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Bitcoin has brought the weight of outings, totaling $ 571 million.
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Entrances to year at the start of the year increased from $ 7.4 billion two weeks ago to $ 6.6 billion last week.
Coinshares, chief of research, James Butterfill attributed this to uncertainty concerning commercial prices, monetary policy and inflation. He said:
“We believe that investors are cautious following the American presidential inauguration and the uncertainty that results from commercial prices, inflation and monetary policy.”
Meanwhile, market players are waiting for the latest piece from American inflation data this week.
What to know:
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The personal consumer expenditure index (PCE), which is the “preferred” inflation gauge from the federal reserve, is expected to be released on February 28.
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Last week, the first unemployment complaints exceeded the median forecasts of 4,000 to 219,000, demonstrating a weakening of the occupational market conditions.
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This considerably attenuated the expectation of multiple rate reductions in 2025.
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The reduction in interest rates, for example, is unlikely before July, despite two Fed meetings planned in the meantime, according to the Fedwatch tool of the CME group.
The cryptography market faces great resistance to general costs
Today’s withdrawal in the market capitalization of all cryptocurrencies, or Total, is part of a correction that started on January 31, which saw a key support zone turn into resistance.
Key points:
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Total transactions lower than a key supply area between 3.28 billions of dollars and 3.31 billions of dollars, or the single mobile averages of 50 days and 100 days (SMAS), respectively.
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The relative resistance index (RSI) is currently positioned at 40, which suggests that market conditions still favor the disadvantage.
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In addition, the sale could see the cryptography market drop to the support of 3.03 dollars.
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Note that this has been a key support area for total since November 20.
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The violation of this level would trigger a sale to the 200 -day SMA at 2.72 billions of dollars.
According to popular Crypto Zone analyst “, the cryptography market sails in a period of neutrality”, with the index of fear and greed seated at 40 years.
The analyst added:
“This suggests that investors weigh their movements carefully, making it a critical moment for strategic decision -making.”
This article does not contain investment advice or recommendations. Each investment and negotiation movement involves risks and readers should conduct their own research when they make a decision.
