The crypto market experienced a sudden selloff in Asia, causing the global market cap to drop by 1% to $1.65 trillion. Bitcoin saw a 2% slip in price within hours, while other top altcoins like ETH, SOL, BNB, and XRP also witnessed drops of 2-4%.
Reasons Behind the Crypto Market Selloff
The high funding rates in the market are causing panic among traders, leading to a need for the market to cool down. Coinglass derivatives exchange data platform reported that funding rates are going crazy, resulting in expected huge volatility.
This has caused traders to move away from their long positions, resulting in a broader selloff. Within just an hour, $40 million worth of longs were liquidated, with a total of $170 million liquidated in the past 24 hours.
Bitcoin, Ethereum, and Other Crypto Prices Decline
CoinGape stated that the upcoming annual options delivery on Friday will be a crucial event. Nearly half of Bitcoin and Ethereum options positions face delivery, and with high funding rates, traders may be looking to shift their positions.
Bitcoin’s price fell from a 24-hour high of $43,765 to its current trading price of $42,759. The trading volume has increased by 26% in the past 24 hours. Meanwhile, Ethereum is trading at $2231, down over 2% in the same period.
Hot Take: Impact of Mt. Gox Creditors Receiving Bitcoin Payments
Reports suggest that Mt. Gox creditors have begun receiving their Bitcoin payments. This development may lead some creditors to sell their Bitcoin gains. Miners are closely monitoring this event as well.
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