In the last 24 hours, the value of BTC dipped by $186 (roughly Rs. 15, 505). In fact, between today and last week, Bitcoin has fallen from a price point of nearly $44,000 (roughly Rs. 36.6 lakh). Experts from the crypto sector are referring to this slowed down period as ‘correction time’ for Bitcoin and other cryptocurrencies.
According to WazirX Vice President Rajagopal Menon, Bitcoin is facing mounting liquidation concerns, with $66.29 million (roughly Rs. 552 crore) liquidated in the past 24 hours, a substantial portion — $46.58 million (roughly Rs. 388 crore) — attributed to long liquidations.
“The 10-day moving averages echo the prior day’s sentiment, leaning toward a ‘Sell.’ Notably, the value of liquidations per percentage point has notably decreased in 2023 compared to 2021, signalling market maturation over the past two years,” says Menon
Following Bitcoin’s lead, Ether also experienced losses on Tuesday, with a 0.42 percent decline, trading at $2,229 (roughly Rs. 1.85 lakh). Ether witnessed $34.64 million (approximately Rs. 288 crore) in liquidations in the last 24 hours, with the majority attributed to long position liquidations.
In addition to BTC and ETH, various other cryptocurrencies, including Tether, Ripple, USD Coin, Dogecoin, Chainlink, and Polygon, are trading in the red. Shiba Inu, Litecoin, Bitcoin Cash, Stellar, and Uniswap are among other cryptocurrencies incurring losses.
The overall crypto market cap decreased by 0.32 percent in the last 24 hours, reaching $1.57 trillion (approximately Rs. 130,90,448 crore) according to CoinMarketCap.
The CoinDCX research team shared their perspective, stating, “While it initially seemed like a market shakeout signaling a potential recovery, more confirmations are needed. The ongoing correction might be a bear trap, constituting a healthy adjustment within the broader bullish trend established in recent months.”
Amidst the losses, Binance Coin, Solana, Cardano, and Avalanche emerged as profit-making cryptocurrencies. Looking ahead, market volatility is expected to persist in the lead-up to the Fed’s rate hike decision and the release of CPI data.
According to Shivam Thakral, CEO of BuyUcoin, Bitcoin is well-positioned for a healthy pullback and could touch the $50,000 (approximately Rs. 41 lakh) mark in the first half of 2024. AVAX is currently leading the altcoin surge with double-digit growth in the last 24 hours.
Crypto Market Swings From Left To Right
The onset of 2023 brought a favorable beginning for the majority of cryptocurrencies. Following a challenging period last year, many crypto tokens embarked on a trajectory of recovery.
The cryptocurrency market is oscillating within a constrained range, following smooth curves and shifts. The repercussions of the FTX fallout in 2022 sent the market on a downward trajectory.
However, this year has presented a renewed and optimistic outlook for major cryptocurrencies like Ethereum and Bitcoin. Gradually turning positive, they benefited from a relaxed macroeconomic environment and easing inflation.
Despite this, market sentiments have transitioned from fear to greed and, subsequently, to a neutral stance. Such fluctuations are inherent in the highly volatile and unpredictable nature of the crypto market.
While cryptocurrencies exhibited signs of stability last month, the impact of U.S. inflation on liquidity disrupted the trend.
The stance of the U.S. Federal Reserve regarding interest rate hikes has significantly impacted the crypto market. Bitcoin reached $31,000 in July 2023, experienced a downturn in August at $27,000, and displayed substantial recovery in October, reaching $34,495. Volatility in the market has left crypto investors perplexed and apprehensive.
The current trading volume in the digital crypto market is $41.21 billion. However, when considering the world’s largest cryptocurrencies, Bitcoin and Ethereum maintained their positions at the top of the charts until last month, showing signs of recovery. As of October 31, 2023, Bitcoin is trading at $34,497, and Ethereum is at $1,808.
