Altcoins
Explanation of the recent price drop
Bitcoin (BTC) the price fell to a one-month low after three consecutive trading days outflows from its spot exchange-traded funds (ETFs).
The leading digital asset rose to $67,000 before slumping to around $64,500 during early Asian trading hours. Other major cryptocurrencies such as Ethereum (ETH), Solana (SOL)and Toncoin (TON) also saw significant declines, each losing more than 3%.
Markus Thielen, founder of 10x Research, speculated that the recent drop in altcoin prices was anticipated due to the significant unlocking of tokens last week. He noted that digital assets such as Aptos, IMX, Starknet, SEI and Arbitrum have unlocked a total of $483 million. This situation prompted venture capital investors to cash out, contributing to the downward pressure on Bitcoin.
He added:
“As altcoin volumes collapsed in Korea, funding rates also collapsed, which caused Bitcoin ETF flows to slow. It was a surprise that Bitcoin failed to recover despite weak inflation data, but the collapse of Ethereum and altcoins could have been predictable.
Liquidated 455 million dollars
According to Coinglass data, recent price movements have liquidated $455 million across the assets of over 172,000 cryptocurrency traders over the past day. Long traders lost $393 million, while short traders saw $62 million liquidated.
Ethereum speculators suffered significant losses, amounting to approximately $92 million, or 20% of the total losses. ETH traders who bet on the price rising lost $75 million, while $16 million was liquidated by short position holders.
On the other hand, Bitcoin recorded long liquidations of $47.43 million and short liquidations of $22.71 million. Large-cap cryptocurrencies like Solana, XRPAND Dogemoneta it also faced significant settlements of $18 million, $4 million and $60 million, respectively.
Cryptocurrency traders using the Binance platform accounted for more than 37% of the market’s total losses, amounting to $170 million over the past day. The single most significant liquidation was a $6.64 million long ETH position.