The world of cryptocurrency was sent into a tailspin as prices plummeted in the last 24 hours, wiping out any progress made following the highly anticipated Bitcoin halving. A staggering $110 billion was wiped from the global market cap, leaving it at a mere $2.36 trillion.
Short-Term Jitters
The crypto market was shaken as Bitcoin (BTC) stumbled and tumbled below $64,000, losing its grip on the recent surge. The lack of trading activity and growing uncertainty were to blame for the sudden dip.
But it wasn’t just Bitcoin feeling the heat – other popular altcoins like Ethereum (ETH), Solana (SOL), XRP (XRP), Cardano (ADA), Dogecoin (DOGE), Toncoin (TON), and Shiba Inu (SHIB) also took a hit, dropping by 5-10% in just one day. The once-promising coins now faced a storm of doubt and hesitation.
Options Expiry Pressures Market
Traders are on the edge of their seats as the clock ticks down to the expiration of a staggering $9.4 billion in monthly crypto options contracts. The anticipation is palpable as over $6.3 billion worth of Bitcoin options on Deribit are set to meet their fate this Friday, with a telling put-call ratio of 0.68 hinting at a surge in bearish predictions.
And it’s not just Bitcoin that’s causing a stir – Ethereum options worth a whopping $3.1 billion are also nearing their expiration, with a put-call ratio of 0.49 adding to the nail-biting tension in the market.
US PCE Inflation Data on Watch
Brace yourself for the highly anticipated release of GDP and inflation figures, which are set to make waves in the financial world. All eyes are on Friday’s unveiling of the Personal Consumption Expenditures (PCE) inflation data, a crucial measure for the US Federal Reserve. Experts are predicting a slight uptick in annual PCE inflation to 2.6%, but keep an eye out for a dip in core PCE inflation from 2.8% to 2.6%.
Leveraged Positions Fuel Liquidations
As the crypto market experiences a downward spiral, the prevalence of high-risk positions is wreaking havoc and leading to major liquidations. According to Coinglass, an astonishing $220 million has been wiped out in the recent market dip, with the majority of losses coming from long positions. In just one day, Bitcoin alone saw a staggering $44.6 million in liquidated positions.
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Samourai Wallet Arrests Add Uncertainty
The shocking detainment of Samourai Wallet’s top executives by the US Department of Justice has sent shockwaves through the crypto world, leaving investors on edge. As if that wasn’t enough, the ongoing turmoil in the Middle East has only added fuel to the fire, causing a major dip in the market.
Looking Ahead
Amidst the current whirlwind of uncertainty, the Fear and Greed Index stands strong at a bullish 72, signaling the unwavering enthusiasm of crypto investors. And it’s not just a number on a chart – the derivatives market is buzzing with a 30% surge in trade volume over the past 24 hours.
Unleashed by the recent Bitcoin halving, the crypto market is now in a state of consolidation. As options expire, inflation data rises, and regulatory actions loom, short-term obstacles may arise.