Why Are Crypto Prices Falling Today?
The crypto market fell in the last 24 hours as Bitcoin could not maintain its upward momentum after the halving. Global crypto market cap dropped over 4% from $2.47 trillion to $2.36 trillion. Market value over $110 billion lost in the last 24 hours.
Bitcoin price fell below $64,000 due to lack of trading volume and increased uncertainty, while BTC fell to $63,589. Investors are bullish on the crypto market this cycle due to the bull market and expected post-Bitcoin halving rally. However, some factors cause them to act cautiously in the short term.
The second-largest crypto Ethereum price also fell over 3% to $3,100; Other altcoins including solana, XRP, Cardano, dogecoin, Toncoin and Shiba Inu are down 5-10% in the last 24 hours.
$9.4 Billion in Crypto Market Expiration
Fear and Greed Index This week the value increased from 57 to 72, indicating an increase in sentiment. Market participants are waiting for some negativities to disappear before taking new positions, and the most important development is that $9.4 billion monthly crypto options expire.
On 96 thousand Bitcoin options worth $6.3 billion Par value assets will expire on Deribit on Friday. The put-call ratio is 0.68, which shows that there has been an increase in put options recently as the monthly maturity approaches. The maximum pain point is $61,000 below the current price. The market can expect large swings with the expected pullback in price on expiration day, but derivatives investors remain cautious about hedging their positions as funding rates are negative.
Moreover, 977 thousand Ethereum options notional value of $3.1 billion It will end with a put-call ratio of 0.49. The maximum pain point is $3,100 and ETH price is currently trading above the maximum pain point and is also higher than the current price of $3,252.
Trading in the last 24 hours indicates an increase in put open positions with a put/call ratio of 0.94. The price may witness a decline towards the maximum paint point and start an uptrend after expiration.
US PCE Inflation Data
The week is seen as macro-heavy due to the multitude of economic events such as GDP, PCE inflation, initial unemployment claims, and others. Bureau of Economic Analysis It forecasts strong GDP growth in the US despite slowing from 3.4% to 2.5% for the second consecutive quarter.
However, the important names on duty PCE inflation On Friday, global investors expected the US Federal Reserve’s preferred indicator to show signs of a decline in inflation after CPI and PPI inflation data came in hot. According to economists, annual PCE inflation will rise to 2.6%, 0.1% higher than the previous 2.5%. Additionally, core PCE inflation is expected to fall to 2.6% from 2.8% last month.
The Fed’s rate cuts are a major factor confirming the bottom in stock and crypto markets this year; Other central banks will likely follow the US central bank’s move.
Also Read: Binance Founder Changpeng “CZ” Zhao Seeks Probation, Receives Unprecedented Support
Leveraged Crypto Liquidations
Highly leveraged positions in crypto are causing massive liquidations, and potential liquidations are expected in the short term. Bitcoin price is at risk of liquidation and falling to $60,000 in case of multiple sell-offs.
coin glass Data shows that more than $220 million has been liquidated in the crypto market amid the pullback. Of these, $180 million in long positions were liquidated and approximately $40 million in short positions were liquidated.
Over 92 thousand investors were liquidated, and the largest single liquidation order occurred on crypto exchange OKX when someone traded ETH for USD worth $5.66 million.
Also Read: Bitcoin ETF Volume Hits Four-Week High But Net Inflows Turned Negative Again
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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 parofix 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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