Bitcoin sinks and generates new mass liquidation of US$ 450 million

Bitcoin sinks and generates new mass liquidation of US$ 450 million
Bitcoin sinks and generates new mass liquidation of US$ 450 million

Bitcoin (BTC) operates sharply lower this Tuesday morning (2) amid the drop in demand for ETFs (index funds) in the United States cryptocurrency and fears about the monetary policy of the largest economy in the world .

At around 10:50 am, BTC is trading down -7.40% at $65,066. On the Binance exchange, the cryptocurrency reached US$64,500. The GMCI 30, an index representing a selection of the market’s top 30 tokens, is down -6.26% this morning.

Bitcoin’s retreat generated US$450 million in liquidations on centralized cryptocurrency exchanges in the last 24 hours, according to data from the CoinGlass platform. Of this total, US$354 million are from long positions – that is, betting on the rise of crypto.

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These liquidations occur when a trader’s position is forcibly terminated by the exchange because of a lack of funds to cover losses.

“Once again, the options market provided an early signal for strong downside movement, particularly the negative skew on risk reversals,” analysts at cryptocurrency trading firm QCP Capital wrote in a report released this morning.

ETF and interest

Bitcoin is down about 10% since peaking at $73,798 in mid-March. Part of the drop is related to the reduction in daily inflows into US spot Bitcoin ETFs.

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On Monday (1st), according to data compiled by Bloomberg, investors withdrew a net US$86 million from the batch of 10 products, which attracted around US$12 billion since they were launched on January 11th.

In addition to the negative movement in index funds, Bitcoin is also reacting to data from the North American industrial sector released yesterday, which exceeded economists’ expectations and cast doubt on the urgency of a cut in interest rates by the Federal Reserve ( Fed, the US central bank).

The crypto market looked “weak” in the last 12 hours following the latest US economic data, Richard Galvin, co-founder of DACM, told Bloomberg. The reduction in interest rate cut bets negatively affects speculative sectors, such as the crypto and stock markets.

The change of heart about the Fed is having an impact “across the entire cryptocurrency market, which has seen a sell-off as the week progresses – no sector is immune, especially those where prices have outperformed Bitcoin over the past six months,” such as, for example, memescoins,” said Stefan von Haenisch, head of trading at OSL SG Pte.

The Bonk (BONK) and Pepe (PEPE) memecoins, which soared in March, are operating down -14.90% and -14.80%, respectively, this morning. On Wall Street, US futures indexes also fall. Dow Jones Futures drops -0.28%, S&P 500 Futures depreciates -0.09% and Nasdaq Futures drops -0.11%.

Check out the performance of the main cryptocurrencies at 10:50 am:

Cryptocurrency Price Variation in the last 24 hours
Bitcoin (BTC) $65,066 -7.40%
Ethereum (ETH) $3,267 -8.60%
BNB Chain (BNB) $550 -7.10%
Solana (SOL) $177 -10.50%
XRP (XRP) $0.5839 -4.70%

Source: CoinGecko

The cryptocurrencies with the biggest gains in the last 24 hours:

Cryptocurrency Price Variation in the last 24 hours
Core (CORE) $3.17 +18.80%
Bittensor (TAO) $527 +4.20%
Bitget Token (BGB) $1.10 +1.50%
Source: CoinGecko

The cryptocurrencies with the biggest drops in the last 24 hours:

Cryptocurrency Price Variation in the last 24 hours
Bonk (BONK) $0.00002245 -14.90%
Pepe (PEPE) $0.056966 -14.80%
Pyth Network (PYTH) $0.8422 -13.10%
Conflux (CFX) $0.3712 -13.10%
FLOKI (FLOKI) $0.0002092 -12.50%
Source: CoinGecko

Check out how cryptocurrency ETFs closed in the last trading session:

ETF Price Variation
Hashdex NCI (HASH11) R$ 53.83 -0.77%
BTCN Hashdex (BITH11) BRL 81.73 -1.41%
Hashdex Ethereum (ETHE11) R$ 52.01 -2.20%
Hashdex DeFi (DEFI11) BRL 38.79 -4.24%
Hashdex Smart Contract Platform FI (WEB311) R$ 40.98 +0.39%
Hasdex Crypto Metaverse (META11) R$ 59.89 -2.61%
QR Bitcoin (QBTC11) R$ 21.98 -0.58%
QR Ether (QETH11) R$ 12.70 -0.78%
QR DeFi (QDFI11) R$ 5.78 +0.69%
Crypto20 EMPCI (CRPT11) R$ 15.30 -0.32%
I invest in NFTSCI (NFTS11) R$ 14.40 -0.34%
I invest BLOKCI (BLOK11) R$ 224.12 -1.92%
Source: B3

(With Bloomberg)

The article is in Portuguese

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