For the second time this month, bitcoin has dipped below $40,000, hitting $38,642 mid-way through the Asia trading session.
-
Bitcoin is down by nearly 8% in the last 24 hours, according to CoinGecko.
-
Ether is also down by nearly 10%, hitting $2,841.
-
Other layer-1s such as Solana and Cardano have also been dragged down, posting declines of 9% and 10% respectively.
-
"Crypto markets have been sitting on a critical support level for some time. Macro market weakness is causing a sell-off in risk assets. Further continuation of this sentiment will likely see BTC trade in the mid-’30s," Stack Funds said in a comment to CoinDesk.
-
According to CoinGlass, there have been nearly $600 million in liquidations during the last 12 hours. Bitcoin led the liquidation pack at $250 million, followed by ether at $163 million and SOL at $10.9 million.
-
Binance led the exchange pack in liquidations at $173 million, with 91% being long positions. Asia-focused exchange Okex was next at $170 million, with the majority being longs.
-
The largest single liquidation order happened on Bitmex in the USDT-bitcoin perpetual swap and was valued at $9.91 million.
-
In its daily research note, Delphi Digital wrote that investors are pricing in numerous rate hikes which are significantly impacting risk assets.
-
"Talk of the town this week is the latest jump in bond yields, most notably U.S. Treasuries, as investors continue to position for an accelerated tightening timeline. The market is now pricing in at least 4 rate hikes this year, with the probability of a 5th ticking up this week. While a lot of headlines have focused on nominal yields, it’s the recent spike in real yields that matters more in our opinion, especially for non-income-producing assets like bitcoin and gold," they wrote.
-
In a note to CoinDesk, Huobi's director of research Li Hui told CoinDesk, "Market sentiment is pessimistic, and investors are in a wait-and-see mood," adding the "decline was very fluid and there was no significant rebound after the support price was broken."
-
This move appears to have caught the market by surprise, as options chain data suggests that there is a significant amount of open interest stuck at $45,000-$46,000 for bitcoin and $3200-$3300 for ether, according to Levitas.
-
Tony Ling, a partner at China-based Byzantine Capital wrote in a note to CoinDesk that investors in China appear to be continuing to cash out given the economic slowdown in the country because of the latest waves of Covid, and the upcoming Spring festival holiday. Ling also pointed to tightening supervision of the few OTC desks that exist in country as another reason local retail investors want out of the market.
All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.
Recommended Content
Editors’ Picks
Prisma price tanks 25% after nearly $9 million exploit
Prisma Finance (PRISMA) is being exploited, and the attacker has so far pulled $9 million in Ethereum from the borrowing protocol. Prisma asked vault owners to take the necessary steps to protect funds from the ongoing attack in an official tweet on X.
Meme coins gain traction after SEC’s partial win in Coinbase lawsuit: DOGE, SHIB, BRETT, POPCAT, BODEN
US SEC pocketed a partial win in its lawsuit against Coinbase, ushering a correction in crypto prices on Thursday. Despite the broad pullback, prices of meme coins like Dogecoin, Shiba Inu and Solana-based BRETT, POPCAT and BODEN increased.
Ondo moves $95 million worth of OUSG assets to BUIDL as tokenized fund attracts $245 million since debut
Ondo Finance (ONDO) announced on Wednesday that it's shifting about $95 million worth of its OUSG's underlying assets to the BlackRock USD Institutional Digital Liquidity Fund (BUIDL).
XRP price stuck below $0.65 resistance, Ripple lawsuit could suffer from Coinbase defeat
XRP price falls slightly to $0.61 on Thursday after its landmark programmatic sales ruling in July, which gave Ripple a partial victory against the US SEC, failed to reverberate in a similar legal battle between the regulator and crypto exchange Coinbase.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.