Major cryptocurrencies declined on Tuesday evening as a broader market correction liquidated over $650 million worth crypto in the last 24 hours.
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EDT) |
| Bitcoin BTC/USD | -4.44% | $62,942 |
| Ethereum ETH/USD | -5.42% | $3,223 |
| Dogecoin DOGE/USD | -4.36% | $0.12 |
What Happened: The price of Bitcoin plummeted below $63,000, triggering a widespread sell-off across the global crypto market.
In just 24 hours, the market capitalization dropped by 8% to reach $2.4 trillion, as reported by CoinMarketCap.
BitMEX Research data revealed an outflow of over $640 million from Grayscale’s spot Bitcoin ETF GBTC on March 18, marking the largest day of outflows since its trading debut on Jan. 11. In contrast, Fidelity’s Bitcoin ETF FBTC experienced inflows of approximately $5.9 billion. Consequently, there was a net outflow from spot Bitcoin ETFs, totaling $154 million.
In the last 24 hours, over 197,035 traders faced liquidation, resulting in total liquidations amounting to $654.48 million. The most noteworthy liquidation occurred on OKX – BTC-USDT-SWAP, with a value of $12.25 million, data from CoinGlass shows.
BTC longs valued at $142 million and ETH longs worth $126 million were liquidated too.
According to CryptoQuant, an on-chain data provider, users who have held BTC for less than five months have been realizing profits over the last week, contributing to the selling pressure.A chart posted by the on-chain analytics firm on X shows the short-term holder SOPR ratio for BTC, indicating a significant movement related to profit realization by short-term holders who have held BTC for less than 5 months.
Top Gainer (24 Hour)
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EDT) |
| Fantom FTM/USD | +15.63% | $1.01 |
| Pepe PEPE/USD | +13.24% | $0.000007164 |
| Celestia TIA/USD | +11.62% | $13.61 |
The global cryptocurrency market cap now stands at $2.39 trillion, showing a 7.34% decrease in the past 24 hours.
In Tuesday’s trading, stocks surged as the Federal Reserve initiated its two-day policy meeting.
The Dow Jones Industrial Average soared by 320.33 points, or 0.83%, concluding at 39,110.76, marking its most impressive performance since Feb. 22. The S&P 500 also climbed by 0.56% to reach a new record of 5,178.51, while the Nasdaq Composite experienced a 0.39% increase, closing at 16,166.79.
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Analyst Notes: Cryptocurrency analyst Michael Van de Poppe said significant bounces across various cryptocurrencies suggest a forthcoming upward momentum.
"Tomorrow is a big day -> FOMC, but I think we’ll be closer to a local bottom, and we are likely seeing BTC pairs running from here. A good quarter for altcoins is on the horizon."
The looming upcoming Federal Reserve meeting on Wednesday aims to determine whether the current correction has reached its conclusion.
CA Saudamini Chandarana, an Analyst at WazirX cryptocurrency exchange, in a note shared by Benzinga said, "Technical indicators, such as the Directional Movement Index (DMI), suggest a cycle peak for Bitcoin may occur within the next two weeks to three months, possibly around April or June. However, historical DMI signals point to a more probable peak by December 2024."
She added, "Recent data shows a substantial influx of $1.05 billion into spot Bitcoin ETFs, coinciding with BTC’s climb to a record high of $73,000. Nevertheless, subsequent sharp declines, including a $6,000 drop, alongside bearish signals from the Relative Strength Index (RSI), indicate imminent corrections."
Analyst Willy Woo has indicated that the Bitcoin Risk Signal, a metric comparing BTC’s network flows to price action, suggests that the leading cryptocurrency is poised for further upward movement.
"The native language of markets is the chart, and it's clear what the chart is saying. See it? TradFi (traditional finance) – ‘fear is greater than greed.' Bitcoin – ‘FOMO is greater than fear.' In TradFi, bear markets are steep, people freak out. In Bitcoin, bull markets are steep, people FOMO. In my opinion, Bitcoin FOMO in bull markets drives the marketing, then education takes over and the sell-off is very much muted. Hodling (holding on for dear life) becomes a behavior."
Read Next: Jim Cramer Advises Against Using Binance, Provokes Strong Reactions From Twitter Users
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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