More than $350 million was liquidated, and the BTC flashed down nearly 7%, is it a normal pullback or the end of the bull market?
Due to the market's market expectations for BTC spot ETFs, coupled with the slowdown in the Fed's interest rate hike policy, BTC ushered in a sharp upside last week, rising from $39,428 to $44,726.8, a maximum increase of 13.43%. However, at 10:12 Beijing time today, the price of BTC fell from $43,700 to $40,200 for a short time, the largest single-day drop of 7.7%, the largest one-day decline since the current round of upward market.
In the past 7 days, BTC and altcoins have risen sharply, among which the old public chain has risen by a large margin, but after this morning's decline, although the overall increase has been made, it has shrunk more. In the past 7 days, the ETH has risen by only 1.1%, with a tentative price of $2237.58, and the ETH/BTC exchange rate has recovered, but it is still at a low level, rising as high as 0.05483, and is currently trading at 0.05304.
In the previous 7 days, among the top 10 tokens by market capitalization, only Solana rose (11.1%) and DOGE (14.1%) by more than BTC; Among the top 50 tokens by market capitalization, AVAX (57.8%), DOT (20.9%), IMX (30.8%), INJ (28.3%), and EGLD (28.4) increased by more than 20%, and the rest of the tokens are generally on an upward trend.
Affected by the overall downturn, the total market capitalization of crypto has exceeded $1,641 billion, down 3.3% in 24 hours, and the overall trading enthusiasm of crypto users is on the rise, with today's panic and greed index at 74 (last week's average was 73), and the degree of greed has changed slightly, and the overall is greedy.
According to the data, in the past 24 hours, the entire network liquidated $389 million, of which $95.4661 million was liquidated in BTC and $80.0731 million in ETH, with a total of 114, 201 people becoming liquidated victims.
The BTC contract open interest was $19.181 billion, down 2.2% in 24 H. In addition, the open interest of ETH contracts on the whole network was $7.861 billion, down 7.62% in 24H.
Today, the overall market suddenly declined, and there was no unfavorable news at the news level, and the market sentiment was generally upward. One possible reason is that the market has risen sharply recently, and the bullish sentiment has caused a market pullback. Especially in recent days, the funding rate of perpetual contracts on major platforms has soared, hitting new highs one after another, and the BTC funding rate even reached 0.03% at one point. Pullbacks can better reduce the leverage of the market and achieve a healthier rise.
BTC Although there was a brief pullback today, it did not fall below $40,000, and the future trend is still affected by the following factors.
The first is BTC expectation of the approval of spot ETFs, and the most critical timeline is before January 10 next year. Bloomberg analyst James Seyffart said the approval window for spot BTC ETFs is expected to be between January 5 and 10, 2024. If the BTC spot ETF is finally approved, it may bring more incremental funds to the crypto market, which will drive the price of BTC higher, referring to the case of the price skyrocketing after the passage of a gold spot ETF.
The second is to halve the market. The BTC halving time is on May 9, 2024, and the time is gradually approaching, according to the previous halving market, BTC due to the decline in the issuance speed and the reduction of the supply side, the unchanged demand assumption will also bring an increase. Also, historical data shows that BTC peaks around 368-550 days after the halving and then bottoms out 779-914 days after the halving.
Third, the Fed is expected to cut interest rates. At present, major institutions or relevant data are indicating that the probability of the Fed cutting interest rates in 2024 is gradually increasing.
According to market conditions, the crypto market fluctuates more frequently. We would like to remind everyone that investment is risky and should be treated with caution.
(Source: Odaily)
