Bitcoin has continued its decline, dropping below the psychological level of $67,000, with the asset’s value recorded at approximately $66,300 at the peak of the drop. At the same time, Ethereum has also significantly decreased, temporarily losing support above $2,000. Other key cryptocurrencies, including Solana, have also felt the overall decline, with Solana losing over 5% of its market value in a day.
This is reported by Finway
Dynamics of Major Cryptocurrencies and the Scale of Liquidations
The decline of Bitcoin has triggered a wave of sell-offs in the altcoin market. Ethereum, the second-largest cryptocurrency by market capitalization, also could not hold above $2,000. Among the top 10 digital assets, Solana showed the largest losses, with its price dropping by over 5% according to CoinMarketCap data.
Among the ten largest cryptocurrencies by market capitalization, Solana has become the leader in decline. This sharp drop has caused a significant increase in liquidations of futures positions on major exchanges.
According to CoinGlass, within just one hour, the volume of liquidations of futures contracts exceeded $180 million, with almost all of this figure attributed to long positions. In total, over 120,000 traders had their positions forcibly closed in a day, and the total volume of liquidations exceeded $440 million.
Market Sentiment: Panic or Opportunity for Investors?
Analysts at Santiment are recording an increase in pessimistic sentiment among retail investors. Market participants are increasingly spreading FUD (Fear, Uncertainty, Doubt) information regarding Bitcoin and cryptocurrencies.
“Analysts at Santiment reported a rise in pessimism among retail investors. According to their data, market participants are actively spreading FUD about Bitcoin and cryptocurrencies.”
Experts from the company note that historically, prices often move in the opposite direction of prevailing sentiments. Therefore, the current level of fear may be viewed as a potential signal to enter the market.
According to Alternative data, the Fear and Greed Index in the crypto market has dropped to a level of 13 points, indicating “extreme fear” among trading participants.
Previously, experts noted record activity from large investors (“whales”) and a reduction in pressure from miners, which may also affect market dynamics in the near future.