- With selling pressure in the crypto market, the cryptocurrency market experienced over $100 million in liquidation in the last 24 hours, influenced by a decrease in investor risk appetite on January 22.
- According to CoinGlass data, an unprecedented liquidation of $107.25 million occurred in the last 24 hours, affecting approximately 55,000 investors.
- As of writing, the global crypto market experienced a 3.16% decline, falling to $1.59 trillion, and the total trading volume increased by 34.50%, reaching $42.49 billion.
With Bitcoin
Bitcoin and Altcoins Under Pressure on Monday
With selling pressure in the crypto market, the cryptocurrency market experienced over $100 million in liquidation in the last 24 hours, influenced by a decrease in investor risk appetite on January 22. This market pullback, in particular, emerged due to many investors making profit-taking maneuvers, speculation about future market performance, and the additional volatility introduced by the recently approved Spot Bitcoin ETF.
According to CoinGlass data, an unprecedented liquidation of $107.25 million occurred in the last 24 hours, affecting approximately 55,000 investors. The largest single liquidation was worth $3.20 million and occurred on OKX – ETH-USD-SWAP. Ethereum led individual crypto liquidations with a liquidation of $22.94 million, followed by Bitcoin with nearly $20.75 million and Solana with $6.53 million.
Among the platforms, Binance took the lead with a liquidation of $52.62 million, followed by OKX with $34.19 million, and Bybit with $12.06 million. However, amid this turmoil, Bitcoin futures Open Interest data shows a 1.81% increase in total BTC Futures Open Interest in the last 24 hours.
In contrast, BTC Open Interest on the CME exchange decreased by 1.66% to $4.69 billion or 114.49K BTC, below yesterday’s levels. At the same time, the Bybit exchange experienced a 1.05% decrease, with Bitcoin Open Interest falling to 76.49K BTC or $3.14 billion. Meanwhile, market experts note that investors tend to assess market conditions and investment opportunities ahead of the release of Q4 preliminary data for the United States Gross Domestic Product (GDP) and Personal Consumption Expenditures (PCE) inflation data this week.
These crucial data points, which will shed light on the current state of the U.S. economy and could influence the Federal Reserve’s stance, are expected to provide insight into the potential direction of the market in the coming week. Simultaneously, ongoing legal issues in the crypto space, especially the actions taken by the SEC against Binance and Coinbase, are adding to investor concerns. In this scenario, legal outcomes and macroeconomic factors are of significant importance, as they can provide visibility into the future moves of the Federal Reserve.
Market Drop Amid ETF-Induced Volatility
As of writing, the global crypto market experienced a 3.16% decline, falling to $1.59 trillion, and the total trading volume increased by 34.50%, reaching $42.49 billion. Some prominent cryptocurrencies, including Bitcoin, Ethereum, Solana, BNB, XRP, among others, faced significant declines in the last 24 hours. Bitcoin traded at $40,840, marking a 2.63% decrease. On the other hand, Ethereum fell to $2,387 with a 4% drop, and BNB decreased to $313 with a 2.03% decline.
Among other cryptocurrencies, Solana witnessed a significant drop of 6.29%, reaching $88.5, and XRP experienced a decline of up to 4.5%, dropping to $0.5309. Cardano, which has recently been notable, also dropped by 5.42%, reaching $0.4913. This recent decline is also linked to Grayscale’s Bitcoin sales. According to COINOTAG, Bitcoin sales following Grayscale’s GBTC share sale increased market pressure.
In particular, crypto analyst Chris J Terry suggests that there will be a continued flat or downward trend until the estimated $25 billion liquidation related to Grayscale Bitcoin Trust (GBTC) is completed. Terry criticizes Grayscale’s decision to keep ETF fees at 1.5%, anticipating possible consequences for the market.
However, Grayscale CEO Michael Sonnenshein disagrees with the idea that high GBTC fees trigger significant liquidations. Galaxy Digital CEO Mike Novogratz, acknowledging the potential selling activity in GBTC, believes that many investors will transition to other ETFs and expresses confidence in Bitcoin by supporting BTCO.
