A Slowdown in Crypto Selloffs
After huge crypto selloffs, the market is currently on a rebound. Liquidation data shows a massive cool-off, which suggests a change in market sentiment. The global crypto market capitalization fell by $57 billion.
It dropped to $2.44 trillion after touching a three-month high of $2.498 trillion the previous day. In the last 24 hours, the global market cap has slipped by 2.5%.
As the crypto selloffs cooled, total crypto liquidations plunged 40% in the last day to $121 million. 75% of that amount ($91 million) constituted long positions; this accounts for 15% of the day’s liquidations.
Meanwhile, there were $11 million in long liquidations and $7.5 million in shorts on Bitcoin. At the time of writing, BTC changes hands at $66,800 – a one-week low.
The Selloffs on Ethereum and Other Cryptocurrencies
Conversely, Ethereum noted a high long-short ratio. $11.2 million of the total $14.5 million liquidations were longs. Nonetheless, ETH’s price is still above the psychological $2,600 zone despite its bearish outlook.
It’s worth noting that the single largest liquidation order came in the Solana (SOL)/USDT pair on the Binance exchange. The value of this order was close to $690,000.
Moreover, on-chain data showed that spot BTC exchange-traded funds in the US recorded their maiden day of outflows. Their net outflow stood at $79.1 million, with the lion’s share coming from ARKB fund belonging to ARK and 21Shares, which saw an outflow of $134.7 million.
In contrast, ETH ETFs saw a net inflow of $11.9 million as uncertainty remains in the market. Remarkably, global crypto market capitalization lost $57 billion after a three-month high of $2.498 trillion a day earlier.
Market Sentiments and the Crypto Selloffs
Meanwhile, analysts believe that the present market conditions present huge buying opportunities despite the bearish outlook in the broader crypto market. According to market predictors, macroeconomic trends could also influence crypto prices, as is often the case.
A notable macroeconomic factor is the upcoming US presidential elections. With less than a month to the US general elections, the cryptocurrency market is heating up.
Over 50 million American voters who are cryptocurrency market participants have realized the importance of the current political dynamics on their holdings, especially regulatory policies regarding this industry.
According to a prediction markets platform, Donald Trump has a 63% chance of becoming the next US president compared to Kamala Harris. Still, tech billionaire Elon Musk remarked that Trump’s chances could go as high as 69%, propelled by strong showings in key swing states.
Most crypto traders predict that a Trump win would signal a strong bullish run for Bitcoin. However, Peter Schiff, a noted critic of Bitcoin, argued that a Trump win could herald a “sell-the-news” event, where Bitcoin prices plunge dramatically.
Schiff insisted that gold is the safer bet for anyone looking for a haven investment from inflation and economic turmoil even though Bitcoin is ‘stealing’ the headlines.
Gold Vs. Bitcoin’s Performance
While many investors are focused on Bitcoin, gold’s price has also been soaring, briefly reaching a new high of more than $2,730 per ounce recently. This price spike reflects the demand for this metal as a hedge against economic turmoil.
Meanwhile, famous trader Peter Brandt remarked that Bitcoin is currently trading around a region that will determine whether it will surge to a new high over the next few months or drop to its next critical support at $48,000.
Brandt also noted that institutional investors might be expecting a BTC rally, which explains their increased investment in the leading digital asset through US spot Bitcoin ETFs in the past week.
With the continued investments in BTC ETFs, investors are maintaining their confidence in the leading digital asset compared to gold and the stock market, both of which have noted decent performances lately. The leading cryptocurrency continues to trade around the $67,000 range in the last 24 hours, according to on-chain data.
