Here’s Why Are BTC, ETH, SOL, XRP, LUNC Falling Today?
The crypto market witnessed a broader sell-off on Friday, causing the global crypto market value to drop almost 4% to $1.61 trillion. Friday’s expiration wreaked havoc on traders and investors, with nearly $250 million liquidated in the last 24 hours. The Crypto Fear and Greed Index drops from 63 (greed) to 56 (neutral).
Bitcoin price fell from $42,720 to $40,631 within hours, taking the 24-hour decline to almost 4%. Top altcoins Ethereum (ETH), solana (SOL), XRP, Cardano (ADA) and others also witnessed a 3-7% decline within hours.
LUNC price fell 9% in the last 24 hours after recent bids failed and the price is currently trading at $0.000113.
Crypto Market Selling As Friday Ends
Investors were expecting a massive liquidation following spot Bitcoin ETF listings that kept the crypto market stagnant throughout the week.
Specifically, 22,000 BTC options with a notional value of $890 million will expire on January 19 with a put-call ratio of 1.1. The maximum distress point is $44,000, indicating that investors are under selling pressure. BTC price dropped 4% and the price is currently trading at $41,419.
Additionally, 211,000 ETH options with a face value of $520 million will expire with a put call ratio of 0.55. The maximum pain point is $2,500, which is higher than the current price of $2,469. ETH price dropped 3% in the last 24 hours to $2,426.
Crypto Market Sees Liquidation of $250 Million
coin glass data points to a massive liquidation of $250 million today, January 19. over 103 thousand Traders were liquidated in the last 24 hours, with the largest single liquidation order occurring on: BinanceBTCUSDT value $7.31 million. As a result of the broader sell-off, the crypto market is in the “red” today.
BTC, ETH and SOL long positions lead the liquidation order. $2.3 million worth of XRP long positions were liquidated, out of a total liquidation of $2.6 million.
Open interest in Bitcoin and Ethereum futures fell below $18 billion and $8.5 billion. However, after the last sales pressure, recovery is expected and it may start to rise again at maturity. Options are looking better despite expiration, Bitcoin and Ethereum calls are still high but there has been an overall decline in volume over the last 24 hours.
So read: Here’s Why The Crypto Market Is Dropping Today, The Short-Term Bitcoin ETF Impact Is Largely Over
Macro Effects
The strong US dollar is causing selling pressure on Bitcoin. US dollar index (DXY) has returned above 103.50 from 101 in early January.
Moreover, US 10-year treasury yields Moving above 4% again further increases selling pressure on Bitcoin. US10Y is at 4.151%, rising above 4% following the spot Bitcoin ETF listing this week.
Hawkish Fed officials eased interest rate cut expectations in March. Data released Thursday showed initial jobless claims unexpectedly fell to 187,000, the lowest level since September of last year.
So read: Bitcoin Dumping Continues as BTC Price Drops Below $41,000, Is Grayscale Behind It?
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Varinder has 10 years of experience in the Fintech industry and has been dedicated to blockchain, crypto and Web3 development for over 5 years. A tech enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in more than 5,000 news stories, articles, and articles. Varinder believes in the great potential of future innovative technologies with CoinGape Media. He currently covers the latest updates and developments in the crypto industry.
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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