The drop in bitcoin in particular and the crypto market in general led to the liquidation of $650 million worth of long positions last week.
Bitcoin and the crypto market have been falling steadily throughout the past week, since the sharp drop since April 18. This caused long positions on derivatives exchanges to have recorded levels. biggest liquidation year to date. The liquidation continued until Sunday.
According to TheBlock, about $650 million of long positions have been liquidated. Most of the liquidation volume is on the exchange Binance and OKXrespectively $234 million and $197 million in liquidation.
Bitcoin is trading at around $27,300, down 9.2% over the past seven years, according to CoinGecko data. The Altcoin market fell in tandem with Bitcoin. Over the past week, Ether is down 12.9%, Ripple’s XRP is down 11.7%, and Polygon’s MATIC is down 17%. Portfolio Strategist Matt Klein said selling pressure has eased.
“The correlation between BTC and ETH returns has been declining since mid to late March,” said Noelle Acheson, former head of market analysis at Genesis Trading.
Bernstein analysts say BTC’s strong price action this year, up 67% year-to-date, appears to have “limited investor confidence in the fundamentals behind the behavior.” price movement”.
“We still believe that the 2023 cycle (and onward) will be about building scalable decentralized financial infrastructure, building a prototype of a new ‘Wall Street’ on blockchain, and certiﬁcation. see the first wave of crypto participation by mainstream institutions,” Bernstein analysts added.
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