In the current market climate, bears have asserted dominance over cryptocurrencies, notably Bitcoin, which has dipped below the $61,000 mark. This decline has led to significant losses for bullish traders, with approximately $100 million in BTC long positions liquidated within the past 24 hours.
The broader cryptocurrency derivatives market reflects this sentiment, with overall losses amounting to $260 million among bullish traders, contrasting sharply with minimal losses of $25 million for those who shorted assets.
The recent announcement by the Mt. Gox trustee regarding the imminent distribution of Bitcoin and Bitcoin Cash to creditors has been a pivotal factor in the market downturn. In the last four hours alone, long liquidations across various assets totaled $110 million.
Bitcoin currently hovers at $60,855, approaching its lowest levels since mid-May, marking a nearly 12% decline over the past month.
Bitcoin Cash has suffered even more, plummeting to $350, down 9% in the last 24 hours and nearly 30% over the past 30 days. The distribution of BTC and BCH to Mt. Gox creditors, scheduled to conclude by October 31, 2024, adds further uncertainty to market dynamics.
Adding to investor concerns, German authorities have been actively selling Bitcoin seized from Movie2k, with recent sales totaling $325 million out of a seized stash valued at nearly $3 billion.
Ethereum, another major cryptocurrency, has also experienced a downturn, with ETH dropping 5% and long liquidations nearing $60 million in the past day. Analysts warn that Ethereum’s critical support levels lie between $3,200 and $3,400, breaching which could escalate selling pressure from institutional investors.
Amidst this bearish landscape, only two coins in the top 100 by market capitalization, LEO and FTM, have shown resilience, registering modest gains of 1.1% and 0.5%, respectively.
As market participants navigate these turbulent conditions, the broader sentiment remains cautious, with attention focused on upcoming developments and potential shifts in investor behavior.
