Bitcoin (BTC), Ethereum (ETH), and other altcoins kicked off the new week on a downward trend.
Currently, Bitcoin and altcoins have dipped below pre-FOMC levels following a significant drop on Sunday night.
In the past 24 hours, Bitcoin has fallen by 2.4%, now trading at $113,000. Ethereum is down by 6.3% to $4,190, XRP has decreased by 6.3% to $2.80, and Solana (SOL) is down by 6.6% to $224.
This decline is believed to be attributed to waning interest in interest rate cuts and investors’ cautious approach towards risky assets amidst an uncertain macroeconomic climate.
Liquidations Close to $2 Billion!
Following the sudden price plunge in Bitcoin and altcoins, over $1 billion worth of long positions were liquidated within a short span of time.
As per Coinglass data, leveraged positions worth $1.7 billion were liquidated in the last day alone – with long positions accounting for $1.61 billion of this total while short positions amounted to $85.9 million.
The data reveals that Ethereum led with crypto liquidations totaling at $493.4 million within just one day; BTC witnessed long liquidations amounting to$2839 million; Solana saw$95..4 million being liquidated; whereas XRP experienced$78..9million in losses from long positions
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“Investors are cautious,long-term investors are not panicking,and not panic selling.However,
short-term investors are uneasy.On-chain data suggests investors are not selling,
so market sentiment reflects nervous optimism rather than outright fear.”
Is the Bull Market Coming To An End?
Speaking with The Block,BTC Markets analyst Rachael Lucas suggested that the bullish run for BTC might be comingto an end asinvestors adopt a more careful approach.
Accordingto Lucas’ analysis,the bullish trend for BTC seems t obe reaching its final stages,promptinginvestorsto exercise caution.
Lucas pointed outthatthe upward trajectory seen sincethe beginningofthe yearhas sloweddown,suggestingthatinvestorsare becoming more waryandshort-term investorsshow particular concern.
“Investorsare cautious,long-term investor sarenot panickingandnot panic selling.However,
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short-term investorsare uneasy.On-chain datasuggests investorsarenotselling,somarket sentimentreflectsnervousoptimismratherthanoutrightfear.”
“Despiteindicatingthatthebullishrunisover,Lucas addedthatasthedeclineisjusta pause,rather thana reversalinto abearmarket:
“Long-terminvestor sarestillholdingontotheir investments,butinvestorsarewaitingforabreakoutabove$124000tostartthenextrally.””<
*Thisisnotinvestmentadvice.
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