During the past 24 hours, the cryptocurrency market experienced a decrease in value by 0.82%, resulting in a total market capitalization of $1.2 trillion. This decline was primarily influenced by the instability of bitcoin (BTC), which fell below the significant $30K threshold on Tuesday.
Within this tumultuous day, traders involved in leveraged digital assets witnessed a massive liquidation amounting to $106.88 million, affecting both short and long positions. Among the casualties of the slump on July 18, the crypto asset 1inch (1INCH) suffered the most, losing nearly 16% of its value against the U.S. dollar.
The market turmoil also impacted other digital assets, with Terra classic (LUNC) experiencing a substantial decline of over 6%, while solana (SOL) also faced a loss of around 6%. Despite the widespread losses, a few coins managed to withstand the downturn. For instance, bitdao (BIT) recorded a growth of more than 2%, and chainlink (LINK) gained 4.65% against the U.S. dollar.
Noteworthy performers on Tuesday included sui (SUI), apecoin (APE), and xdc network (XDC). In terms of liquidations within the past hour, BTC, XRP, BCH, and ETH led in the number of positions liquidated. While the crypto markets experienced a general decline, the Bitfinex Alpha Report for this week suggests that bitcoin investors are displaying a more bullish sentiment.
Bitfinex Alpha Report
According to the report, onchain movements of Bitcoin indicate a transfer of supply from long-term holders (LTHs) to short-term holders (STHs), a trend often observed during bullish market conditions.
“The shift suggests the presence of new market participants seeking quick profits, as well as long-term holders capitalizing on favorable prices. As this pattern stabilizes, it signifies the early stages of a bull market, characterized by the exchange of supply between these two groups,” elaborates the report.
We would love to hear your thoughts and opinions on the recent market volatility in the crypto space over the past 24 hours. Please feel free to share your comments and perspectives in the section below.
Frequently Asked Questions (FAQs) about cryptocurrency market volatility
What caused the recent decline in the cryptocurrency market?
The recent decline in the cryptocurrency market was primarily caused by the instability of bitcoin (BTC), which fell below the crucial $30K mark on Tuesday. This drop triggered losses and contributed to the overall market volatility.
How were leveraged digital asset traders affected during this period?
Which coins performed well despite the market downturn?
While many coins suffered losses, there were a few that managed to withstand the market downturn. For example, bitdao (BIT) recorded a growth of over 2%, and chainlink (LINK) gained 4.65% against the U.S. dollar. These coins showed relative strength compared to others in the market.
What does the Bitfinex Alpha Report indicate about bitcoin investors?
The Bitfinex Alpha Report suggests that bitcoin investors are displaying a more bullish sentiment. The report highlights a shift in onchain movements, indicating a transfer of supply from long-term holders (LTHs) to short-term holders (STHs). This trend is often observed in bullish market conditions.
We invite you to share your thoughts and opinions on the recent market volatility in the comments section below the article. Feel free to engage in discussions and express your perspectives on this subject.
More about cryptocurrency market volatility
- Bitcoin Price Drops Below $30K
- Crypto Market Liquidations
- 1inch (1INCH) Performance
- Terra classic (LUNC) Performance
- Solana (SOL) Performance
- Bitdao (BIT) Performance
- Chainlink (LINK) Performance
- Bitfinex Alpha Report
- Understanding Crypto Market Volatility