Altcoin
$440 Million Lost in Altcoin Liquidations
9.14am ▪ 3 minute read ▪ by Fenelon L.
As the cryptocurrency market plummets for the second day in a row, investors are suffering the consequences of significant altcoin liquidations. A wave of capitulations now represents more than $440 million in just 24 hours.
The winter of the cryptocurrency market is prolonged
The last 24 hours have put the cryptocurrency market to the test. The overall capitalization fell by 3%, reaching $2.45 billion. In the heart of this storm, nearly all of the top 100 digital assets suffered significant losses.
Bitcoin lost 2% of its value, while Ethereum fell by 3%. However, altcoins bore the weight sharp declines, with major tokens such as Fantom (FTM), Enjin (ENA), SUI and Uniswap (UNI) recording drops of up to 17%. In this context, Bitcoin’s dominance has even exceeded the 56% threshold, an unprecedented level since last March.
According to CoinGlass data, this turbulence led to the liquidation of 161,137 traders, for a total of $443.93 million. Ethereum faced lengthy liquidations of $75 million, while Bitcoin amassed $47 million.
The shadow of massive breakouts looms over Altcoins
Many analysts identify recent massive token unlocks as the main factor in this altcoin collapse. The company 10xResearch highlights the dumping of tokens worth $483 million from projects such as Aptos, Immutable X, Strike, Sei Network, Arbitrum, ApeCoin and Uniswap.
“Early investors and venture capital funds appear to be under enormous pressure to exit. These huge flows are causing the collapse of Bitcoin,” explains the company. Moreover, recent data reveal it US Bitcoin ETF recorded outflows of more than $145 million on June 17.
Michael Van de Poppe, a renowned crypto analyst, believes that this collapse represents the final stage of capitulation for altcoins. “It’s the usual cycle, I’ve already seen it in 2020,” he comments.
This violent correction, while indicative of turbulence that appears far from over, could still represent a decisive turning point for the cryptocurrency market. Indeed, such events, however painful, have often served as a catalyst for a market reorganization.
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Fenelon L.
Passionate about Bitcoin, I want to explore the meanings of blockchain and cryptocurrencies and participate in my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be relied upon as investment advice. Do your research before making any investment decisions.