The Crypto Market Witnesses a Massive Selloff Amid Uncertainty
The crypto market experienced a significant selloff around 09:30 AM UTC, causing the global crypto market cap to drop by nearly 1.50% to $1.07 trillion. While Bitcoin remained stable, altcoins like Ethereum (ETH), XRP, Solana (SOL), DOGE, and SHIB saw major selling within minutes.
Bitcoin Price Slips as Longs Get Liquidated
Bitcoin’s price slipped to $27,500 from a 24-hour high of $28,000. This drop caused $50 million in long positions to be liquidated in just one hour, with a total of $90 million liquidated in the last 24 hours. Ethereum also fell, dropping more than 1% in an hour and nearly 2% in the last 24 hours.
Altcoins Experience Selling Pressure
Among the top altcoins, Bitcoin Cash (BCH) led the selloff with a 4% drop in just one hour. Other altcoins like XRP, SOL, DOGE, SHIB, and ADA also fell by nearly 2% in an hour, resulting in a 5% decline over the past 24 hours.
Massive Long Liquidations and Inflows into Digital Asset Investment Products
Coinglass data shows that there have been massive long liquidations totaling $90 million on October 9. In the last 24 hours, over 38k traders were liquidated, with the largest single liquidation order worth $3.11 million. On the other hand, digital asset investment products have seen inflows of $78 million for the second consecutive week after six weeks of outflows.
Macro Factors and Geopolitical Risks Contribute to the Selloff
The selloff in the crypto market can be attributed to macro factors such as geopolitical risks. The ongoing Israel-Hamas conflict has increased WTI and Brent crude prices, leading to red stock market indexes worldwide. Investors are also concerned about potential inflation acceleration and its impact on global monetary policy.
Hot Take: Bitcoin Holds Above $27,500 Despite Weakness in Price
Despite the recent price drop, popular analyst Michael van de Poppe predicts that Bitcoin will continue to hold above $27,500 and make higher lows. He believes that altcoins will continue to suffer and experience further corrections. The US Dollar Index (DXY) reaching over 106.50 may put additional pressure on Bitcoin’s price as it continues to rise.
Disclaimer: This article represents the personal opinion of the author and is subject to market conditions. It is important to conduct thorough market research before investing in cryptocurrencies. The author and publication are not responsible for any personal financial losses.
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