Bitcoin, ETH, SOL, ADA, XRP Retreat With $100 Million Liquidation, Here’s Why
During the selloff in the crypto market, the cryptocurrency market experienced a significant decline on January 22, and more than $100 million was converted into cash in the last 24 hours due to investors’ reduced risk appetite. In particular, this pullback in the market is attributed to profit-booking maneuvers by many investors, speculation regarding future market performance, and the lingering impact of the recently approved Spot Bitcoin ETF, which adds a layer of volatility.
Crypto Market Sales: Potential Factors and Market Trends
According to CoinGlass data, in the last 24 hours the crypto market witnessed an unprecedented liquidation of $107.25 million, affecting approximately 55,000 investors. The largest single liquidation worth $3.20 million occurred on OKX – ETH-USD-SWAP. Specifically, Ethereum led individual crypto liquidations with $22.94 million, followed by Bitcoin with $20.75 million and solana with $6.53 million.
Meanwhile, reviewing crypto exchanges, Binance led the list with liquidations of $52.62 million, followed by OKX with $34.19 million and Bybit with $12.06 million. But amidst this turmoil, Bitcoin futures Open Interest data shows a 1.81% increase in total BTC Futures open interest over the last 24 hours.
In comparison, BTC Open Interest on the CME exchange decreased by 1.66% compared to yesterday, falling to $4.69 billion or $114.49 thousand. Simultaneously, Bybit exchange witnessed Bitcoin Open Interest falling by 1.05% to 76.49 thousand BTC or $3.14 billion.
Meanwhile, market experts attribute this decline to profit-booking opportunities and traders assessing market conditions ahead of Q4 US GDP Data and PCE inflation data to be released this week. These key data points will illuminate the current state of the U.S. economy and potentially influence the Federal Reserve’s stance. In addition, markets are eagerly awaiting the Fed meeting, which will shed light on the Fed’s possible stance next week.
Simultaneously, ongoing legal challenges in the crypto space, particularly the SEC’s actions against binance and Coinbase, are increasing investors’ concerns. In this case, in addition to macroeconomic factors such as the upcoming Fed meeting, legal consequences are also eagerly awaited and predictions about the Fed’s future moves are awaited.
Also Read: Shiba Inu Burning Rate Increased 200% With Community Cremation 44 Million SHIB
Market Drops Amid ETF-Led Volatility
As of press time, the global crypto market is down 3.16% to $1.59 trillion, and overall trading volume is up 34.50% to $42.49 billion. Among major cryptocurrencies, Bitcoin, Ethereum, Solana, BNB, XRP and others witnessed significant declines in the last 24 hours.
Bitcoin price is down 2.63% at $40,677.05 at the time of writing on Monday and has fallen to $40,364 in the last 24 hours. On the other hand, Ethereum price decreased by 4% to $2,380.04, and BNB price decreased by 2.03% to $312.66.
Among other cryptocurrencies, Solana price dropped by a significant 6.29% to $87.71, and XRP price dropped by 4.5% to $0.5294. Cardano price, which has gained significant momentum recently, dropped by 5.42% to $0.4913.
Meanwhile, the recent decline is also attributed to Grayscale selling Bitcoin. As reported by CoinGape Media, Grayscale’s recent sale of Bitcoin after its GBTC stake sale has intensified market pressure.
In particular, crypto analyst Chris J Terry suggests that the sideways or bearish trend will continue until the estimated $25 billion liquidation of Grayscale Bitcoin Trust (GBTC) is completed. Terry criticizes Grayscale’s decision to keep ETF fees at 1.5%, anticipating potential consequences for the broader market.
But Grayscale CEO Michael Sonnenshein disputes the idea that high GBTC fees are leading to serious liquidations. Galaxy Digital CEO Mike Novogratz acknowledges potential selling activity in GBTC but predicts investors will support BTCO by moving into other ETFs.
Also Read: Binance Announces Massive Cross-Chain Stable Token Burn
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A seasoned professional with 3 years of experience in the financial market, Rupam has honed his skills as a meticulous research analyst and insightful journalist. She enjoys exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond traditional boundaries. His contributions include breaking news, examining AI-related developments, providing real-time crypto market updates, and providing insightful economic news. Rupam’s journey is marked by his passion to demystify the intricacies of finance and deliver impactful stories that will resonate with diverse audiences.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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