What’s Happening With Crypto? Understanding the Latest Crypto Liquidation

Cryptocurrency Market Slumps: Understanding the Recent Liquidation Event

The global cryptocurrency market is facing a significant downturn, with a trend of increasing liquidations threatening Bitcoin and altcoins.

Bitcoin Price Pressure

At the time of writing, Bitcoin's price has dropped to $54,541, down from $57,031 yesterday. Over the past four days, the value has plummeted from $62,829, marking an 11.5% decline this week. On June 29, it stood at $60,920.

Ethereum Price Plummets

Ethereum has also experienced a steep decline, with a 16.3% drop this week. On July 2, it was valued at approximately $3,417, but has since fallen to $2,868.8.

Liquidation Surge

The sharp price decreases have fueled a surge in liquidations. Reports indicate that over 221,704 traders liquidated their positions in the past 24 hours. Ethereum liquidations reportedly surpassed those of Bitcoin, reaching $44.5 million in the past hour and $107 million over the past 24 hours.

Possible Causes

The exact reason for the sudden price drop in ETH is still unclear. However, some experts, like Antony Sassano, suggest that it's related to the Grayscale ETHE Fund. They posit that the fund, which invests in Ethereum, has become more expensive than the actual ETH, potentially causing uncertainty among investors.

Memecoin Sector Woes

The downturn has also affected the memecoin sector. Top memecoins like Dogecoin, Shiba Inu, and Pepe have lost between 17% and 25% in the past 24 hours.

Market Sentiment

The current market situation favors sellers. The release of the Ethereum Spot ETF is imminent, but it remains to be seen whether it will spark a market rebound.

Stay tuned for further updates on the crypto market crash.