{"id":5798,"date":"2022-01-24T11:14:05","date_gmt":"2022-01-24T11:14:05","guid":{"rendered":"http:\/\/egrowonline.com\/?p=5798"},"modified":"2022-01-24T11:14:05","modified_gmt":"2022-01-24T11:14:05","slug":"crypto-liquidations-pass-700m-as-altcoins-take-a-hit-from-bitcoin-sinking-below-40k","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=5798","title":{"rendered":"Crypto liquidations pass $700M as altcoins take a hit from Bitcoin sinking below $40K"},"content":{"rendered":"


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Bitcoin (BTC<\/a>) stayed lower on Friday after an overnight bout of volatility sent the largest cryptocurrency to six-month lows.<\/p>\n

BTC\/USD 1-hour candle chart (Bitstamp). Source: TradingView<\/em><\/figcaption><\/figure>\n

$40,000 optimism unwinds<\/h2>\n

Data from Cointelegraph Markets Pro<\/a> and TradingView<\/a>\u00a0showed BTC\/USD reversing at $38,250 after shedding over $4,000<\/a> in hours.<\/p>\n

Circling $39,000 at the time of writing, traders were reeling from the sudden downside, which came just as BTC had hit multi-day highs, passing $43,000.<\/p>\n

Liquidations<\/a> across trading platforms were thus predictably significant. For Bitcoin and altcoins combined, 24-hour position unraveling totaled $725 million, with BTC positions accounting for $292 million.<\/p>\n

The vast majority of the casualties were long positions, a sign that the area around $40,000 had attracted considerable faith as a solid support line.<\/p>\n

Crypto liquidations chart. Source: Coinglass<\/em><\/figcaption><\/figure>\n

As Cointelegraph reported, Friday\u2019s options expiry, involving the open interest of nearly $600 million, was\u00a0considered the main culprit for sparking the volatility<\/a>. By contrast, outside triggers such as Russia\u2019s proposed blanket ban on crypto trading and mining appeared to have little to no impact<\/a>.<\/p>\n

\u201c$42.4-42.7K couldn\u2019t continue to hold for Bitcoin, so a nuke towards the other side of the region and, most likely, continuation towards even further downwards momentum and lower lows -> happened,\u201d Cointelegraph contributor Micha\u00ebl van de Poppe explained<\/a>.<\/p>\n

The move had been long in coming, with more conservative analysts predicting a return closer to or even below $30,000<\/a> throughout January.<\/p>\n

Ether returns to established support<\/h2>\n

Altcoins, meanwhile, took a noticeably harsher hit as Bitcoin fell.<\/p>\n

Out of the top 10 cryptocurrencies by market capitalization, 10% drops were commonplace and rebounds limited, with only Terra (LUNA<\/a>) reining in losses to under 5%.<\/p>\n

Related:\u00a0Breaking \u2018bear market\u2019 in Bitcoin demand will spark next BTC price surge \u2014 Analysts<\/a><\/em><\/strong><\/p>\n

Ether (ETH<\/a>) fell to crucial support around $2,800, the site of an all-time high<\/a> from last April, to cap weekly losses approaching 15%.<\/p>\n

ETH\/USD 1-hour candle chart (Bitstamp). Source: TradingView<\/em><\/figcaption><\/figure>\n<\/div>\n


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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Bitcoin (BTC) stayed lower on Friday after an overnight bout of volatility sent the largest cryptocurrency to six-month lows. BTC\/USD 1-hour candle chart (Bitstamp). Source: TradingView $40,000 optimism unwinds Data from Cointelegraph Markets Pro and TradingView\u00a0showed BTC\/USD reversing at $38,250 after shedding over $4,000 in hours. Circling $39,000 at the time of writing, traders were […]<\/p>\n","protected":false},"author":1,"featured_media":5799,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[41],"tags":[4115,4113,200,50,62,133,3355,2214,4114],"class_list":["post-5798","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum","tag-40k","tag-700m","tag-altcoins","tag-bitcoin","tag-crypto","tag-hit","tag-liquidations","tag-pass","tag-sinking"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/01\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDEvZjlkNzBkMjItZDUxYS00NzM3LTllMzktYzA1ZjNmODBiNzYyLmpwZw.jpg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/5798","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5798"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/5798\/revisions"}],"predecessor-version":[{"id":5800,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/5798\/revisions\/5800"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/5799"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5798"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}