Are Investors in a Frenzy Cryptocurrency Liquidations Surge amid Plummeting Prices

Major Points of Interest
The cryptocurrency market is currently enduring a substantial decline as Bitcoin has dropped by 11.5% this week, and Ethereum has experienced a 16.3% decrease.
A significant number of traders are offloading their assets, with Ethereum seeing more selling activity compared to Bitcoin.
Leading meme-based cryptocurrencies have also registered substantial losses, with some plummeting by over 20% in the last 24 hours.
There is a prevailing sense of distress in the global crypto market as escalating liquidation poses a threat to the stability of both Bitcoin and alternative coins.
Explore further to stay updated on the ongoing crypto downturn and learn about predictions from industry experts.
Bitcoin Plummets
At present, the price of Bitcoin is at $54,541, down from $57,031 yesterday. In the span of four days, Bitcoin has crashed from $62,829, culminating in an 11.5% decline for the week. On June 29, Bitcoin was valued at nearly $60,920.
By July 1, it had surged to $62,793; however, within the last 24 hours, it has tumbled by close to 7.3%. The hourly chart for Bitcoin exhibits substantial selling pressure, indicated by at least three prominent red candlesticks. Initially, there was a balance between buyers and sellers in the market, slightly tipping in favor of buyers. Nonetheless, sellers ultimately gained control.
Ethereum in a Tailspin
Likewise, the price of Ethereum has spiraled downward over the past four days, experiencing a 16.3% dip this week. On July 2, Ethereum’s value hovered around $3,417, but it has now descended to $2,868.8. On June 29, it stood at approximately $3,372.
Despite hitting a high of $3,441 per week on July 1, Ethereum’s strength has dwindled steadily. The hourly chart shows multiple extended red candles denoting substantial drops, including one that plummeted from $3,093 to $2,930. Within the last 24 hours alone, Ethereum has shrunk by more than 10.2%.
The current market environment heavily favors sellers, with panic-driven selling intensifying as prices dip below $3,000. Over the past day, over 221,704 traders have liquidated their assets. Reports suggest that the volume of Ethereum sold off surpasses that of Bitcoin, with $44.5 million liquidated in the last hour alone and over $107 million in the past 24 hours.
The Uncertainty Surrounding Ethereum’s Future
The specific reasons behind Ethereum’s abrupt price drop remain murky. Expert Antony Sassano draws attention to concerns regarding the Grayscale ETHE Fund as a potential contributing factor. Once cheaper than the actual Ethereum it represents, the fund has now become pricier, sparking worries among investors about future fees when the fund transitions to an ETF. This ambiguity may be prompting certain investors to divest their holdings.
Memecoin Sector Plunges: Vital Details to Consider
Nearly all of the top ten meme coins have witnessed noticeable declines in the last 24 hours, with losses ranging from 17% to 25%. Dogecoin, Shiba Inu, and Pepe have each dropped by 15.5%, 14.9%, and 16.2% correspondingly. Dogwifhat, Bonk, and FLOKI have declined by 11.2%, 12.1%, and 15% respectively. Brett has experienced a significant decline of 21.6%, while Book of Meme has fallen by 17.9%. Mog Coin reports a moderate decline of 8.0%.
As the launch of the Ethereum Spot ETF looms just a few weeks away, the future trajectory of the crypto market remains uncertain. The impact of this development on market recovery is yet to be determined.
Additional Information:
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