Bitcoin (BTC), Ethereum (ETH) and altcoins started the new week with a decline.
At this point, Bitcoin and altcoins fell below pre-FOMC levels with the sharp decline experienced on Sunday night.
Bitcoin is down 2.4% in the last 24 hours, trading at $113,000. Ethereum is down 6.3% to $4,190, XRP is down 6.3% to $2.80, and Solana (SOL) is down 6.6% to $224.
This decline is thought to be due to the decline in enthusiasm for interest rate cuts and investors’ cautious approach to risky assets in the face of an uncertain macroeconomic environment.
Liquidations Near $2 Billion!
Following the sudden price drop in Bitcoin and altcoins, over $1 billion worth of long positions were liquidated in a very short time.
According to Coinglass data, $1.7 billion in leveraged positions were liquidated in the last 24 hours. Of this, $1.61 billion was from long positions and $85.9 million was from short positions.
According to the data, Ethereum led the way with $493.4 million in crypto liquidations in 24 hours, while BTC saw $283.9 million in long liquidations, Solana $95.4 million, and XRP $78.9 million.
Analysts noted that this situation frequently occurred during the Sunday night session, with low liquidity leading to a major crash. However, dips are often bought at the US market open, analysts said.
Is the Bull Over?
Speaking to The Block, BTC Markets analyst Rachael Lucas claimed that the BTC bull run is over as investors are turning cautious.
According to Lucas’ analysis, the BTC bull market is reaching its final stages, prompting investors to adopt a more cautious stance.
Lucas noted that the long-term upward trend seen after the beginning of the year has subsided, adding that investors are now cautious and short-term investors appear particularly worried.
However, Lucas concluded that the absence of a major sell-off suggests that overall market sentiment is closer to anxious optimism than outright fear.
Despite his comments that the bull run is over, Lucas added that this decline is just a pause, not a reversal for the bear market: “Long-term investors are still holding on to their investments, but investors are waiting for a breakout above $124,000 to start the next rally.”
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/bitcoin-btc-and-altcoins-start-the-new-week-with-a-1-7-billion-drop-what-caused-the-drop-bad-news-from-an-analyst/
