Why Crypto Market is Down Today? What Caused $250 Million Liquidations In 24 Hours?

The post Why Crypto Market is Down Today? What Caused $250 Million Liquidations In 24 Hours? appeared first on Coinpedia Fintech News

The crypto market experienced a widespread selloff on April 19, resulting in over $160 million in assets being liquidated within an hour and a total of $250 million liquidated over the past day. Bitcoin’s price dipped 2.4% to $29,000, while Ethereum saw a sharp decline below the $2,000 mark, dropping over 5.8% in 24 hours. 

This has left traders alarmed and has sent shockwaves throughout the industry. What next? Read on.

Altcoins Follow Suit

Prominent altcoins, such as Binance Coin (BNB), XRP, Cardano, Dogecoin, Polygon (MATIC), and Solana, also experienced a nearly 5% drop, contributing to the 3% decline in the global crypto market cap, which now stands at $1.23 trillion. 

Data from Coinglass highlights over $175 million in longs liquidated on April 19, with almost 75,000 traders affected within the last day. The largest single liquidation was a $3.02 million order on Binance’s BTCUSDT pair. As the market struggles, bulls are striving to protect pivotal levels for Bitcoin and Ethereum. The majority of liquidations were longs, possibly indicating a long squeeze. 

Related: Bitcoin Price Forecast: BTC Price To Hit $45k by May 20th: Research Analysts Weigh In – Coinpedia Fintech News

Ethereum-Bitcoin Pair Outlook

Crypto analyst Smart Contracter says he is monitoring the Ethereum-Bitcoin (ETH/BTC) pair closely. He believes the pair has likely reached its 2023 low at 0.062 BTC ($1,879) and is poised for a sustained uptrend in the coming months. He predicts that the pair will trade well over 0.10 ($3,032) by year-end, signaling Ethereum’s value is rising faster than Bitcoin. Currently, the ETH/BTC pair trades at 0.069 BTC or $2,092.

Smart Contracter also highlights that Ethereum has broken through a key resistance level on its weekly chart that has stifled its growth for almost a year. He suggests that it’s time to “overcome the PTSD (post-traumatic stress disorder) and get back into the mindset of the good old days.” As of press time, Bitcoin’s value stands at $29,212, while Ethereum is trading at $1,981.