By
Chimamanda U. Martha
June 28th, 2024
The cryptocurrency market continues to endure a severe downturn, resulting in the liquidation of 32,916 traders.
In the past 24 hours, over 32,000 traders, who speculated on the prices of Bitcoin (BTC), Solana (SOL), Notcoin (NOT), and PEPE, were liquidated. This wiped out approximately $85 million from the market.
These liquidations occurred exclusively on centralized exchanges, with OKX taking the lead. According to data from blockchain analytics company CoinGlass, the largest liquidation order took place on the Seychelles-based exchange founded in 2017. The exchange lost $4.24 million in an ETH/USDT pair.
Users trading on Binance, Bybit, and HTX (formerly Huobi Global) in the last 24 hours collectively suffered losses of around $45 million. Each of these exchanges, including OKX, contributed approximately 44%, 36%, 10%, and 5% of the total liquidations in a single day.
These liquidations can be attributed to several factors, including the ongoing market downturn that saw Bitcoin price drop below $60,000 to $58,000 on Monday, marking its lowest point this month. Bitcoin has shed up to 6% of its value within the past week, marking the second-worst weekly decline of 2024. Its market cap has decreased from $1.3 trillion to the current value of $1.22 trillion, impacting the global digital assets market.
Currently, the total cryptocurrency market stands at $2.28 trillion, according to CoinMarketCap.
Analysts Predict Further Decline
Despite the current market panic triggered by Bitcoin’s sudden drop, analysts foresee more potential downward movement before any chance of recovery.
Earlier this week, Markus Thielen, founder of the respected crypto research firm 10x Research published a new research highlighting Bitcoin’s struggle to surpass key resistance levels . According to him, the bitcoin’s inability to break this level has formed a “double-top price pattern”, which could drive the crypto asset lower, possibly down to $50,000.
He explained that Bitcoin might transition from its current trading range of $60,000 to $70,000 into a formation indicating further declines before potentially rallying.
“Bitcoin could shift from its current range trading (60,000-70,000) into a topping formation, potentially leading to a steeper decline,” he said.
Despite potential positive factors such as the upcoming US presidential elections and the Consumer Price Index (CPI) expected later in 2024, Bitcoin could still experience a “steeper correction”, which would pose risks for retail investors. Thielen emphasized that such topping patterns historically expose average retail investors to vulnerability, often resulting in significant drops across various alternative cryptocurrencies.