Liquidations have surged in the cryptocurrency markets over the past 24 hours as the price of Bitcoin falls and capital flows out of risky assets.
A total of 81,838 traders were liquidated over the last 24 hours, bringing the total liquidation volume across centralized exchanges to $272 million. data From Coinglass. Bitcoin Bitcoin
-0.81%
It was the leading cryptocurrency in liquidations, with around $78 million liquidated in the last 24 hours. Of these Bitcoin liquidations, around $44 million were long positions.
The cryptocurrency market’s decline was reflected in a stock market crash on Friday. The S&P 500 was headed for its worst session in nearly two years after a much weaker-than-expected July U.S. jobs report raised concerns about an impending recession. The Nasdaq Composite fell 2.9%, bringing the tech-heavy index’s decline to more than 10% from its recent all-time high. The Dow Jones Industrial Average fell 863 points, or 2.1%, and at one point fell as much as 989 points in early morning trading.
Bitcoin Could Retest $62,500 Support Level
One analyst said the largest digital asset by market cap could fall back to the same support level.
“We believe the market is currently in an accumulation phase and is likely to retest the $62,500 support in the near future. We do not expect a major move in any particular direction, so it would be wise to reduce exposure,” BRN analyst Valentin Fournier told The Block.
However, he added that Bitcoin could potentially break the $70,000 resistance level in the medium term as the digital asset accumulates liquidity. Fournier cited factors that have influenced Bitcoin’s current range-bound performance. He said spot Bitcoin ETFs have only seen modest net inflows over the past two days.
“This shows investor indecision, but overall sentiment is still positive,” he added. Fournier also highlighted certain factors that could delay Bitcoin’s clear bullish trend.
“Kamala Harris has significantly increased her chances of winning the US presidential election, which has raised concerns about anti-cryptocurrency sentiment and dampened enthusiasm around Trump’s speeches and promises,” Fournier said.
Harris, improving election odds and Bitcoin
Some betting sites currently have Harris ahead of Donald Trump in November. Online prediction market PredictIt currently sees Harris as the favorite to win in November, with her winning stock trading at 52 cents, while Donald Trump’s winning stock is trading at 50 cents.
Kamala Harris is ahead of Donald Trump in the US presidential race. Image: PredictIt.
Ruslan Ryenka, of online exchange YouHodler, said crypto investors are currently noticing that the vice president is being favored in several online prediction markets, and that a Harris win would have a negative impact on bitcoin, the largest digital asset by market capitalization.
“If investors believe a Democratic administration will impose stricter cryptocurrency regulations, then bitcoin prices could fall,” Lienkha told The Block. “Harris’ momentum in key swing states could exacerbate those concerns.”
Bitcoin’s 25% delta skew shows that there is less excess demand for out-of-the-money (OTM) calls relative to puts. Image: Deribit.
Bitcoin Options 25% Delta Skew
According to Deribit’s weekly analysis report, 25% delta skew in Bitcoin options suggests that the market is expecting a downtrend as the implied volatility of OTM puts is higher than that of OTM calls.
The report added, “Bitcoin 25-delta risk reversal – A decline in across-the-board volume coincides with a decline in excess demand for OTM calls over puts.”
Bitcoin At the time of publication, the price was trading flat at around $63,070. Bitcoin price page on the block.
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