Data from Coin Glass reveals that in the last 24 hours, 79,710 traders worth $237.37 million, were liquidated as flagship cryptocurrency asset, Bitcoin fell below $40,000. Since peeking out at $47,313.48 at the start of the second quarter, Bitcoin has been in a downtrend that has seen it lose over $8,000 or 17.63% to currently stand at $38,970.72 as of the time of this writing.
The decline in the market comes despite bullish news from the Terra foundation promising to buy $10 billion worth of Bitcoin to back its programmable stablecoin, UST, which is currently the third most capitalized stablecoin, after flipping BUSD.
The decline in the market is as a result of the strength seen in the dollar index, a measure of the strength of the United States dollar. The dollar index currently trades 100.612 basis points. The last time the dollar traded this high was in 2020, before the COVID-19 crash.
What you should know
- The bullish momentum in the dollar index is as a result of more hawkish comments from Federal Reserve officials, who have reinforced expectations for faster U.S. policy tightening.
- New York Fed President, John Williams said that a half-point rate rise next month was “a very reasonable option,” in a further sign that even more cautious policymakers are on board with faster monetary tightening.
- With Bitcoin’s decline below $40,000, so is the same story for the broader cryptocurrency market. The cryptocurrency market capitalization has fallen below $2 trillion again, as it currently stands at $1.81 trillion, down 3.81% in the last 24 hours.
- Ether, the second most capitalized cryptocurrency by market value currently trades below the $3,000 support zone to currently stand at $2,911 as of the time of this writing.
- Of the top 10 cryptocurrencies, majority of them are posting losses of 5% and more in the last seven days with the exception of XRP, which is currently up 3.55% in the last 7 days as positive news from the Ripple case against the SEC has contributed to bullish price action.
- Asides from price, we are also seeing declines in Bitcoin’s network fees. The average transaction fee per Bitcoin (BTC) transaction made a complete 360-degree over nearly two years to settle down at $1.039, a number which was last recorded back in June 2020.
- The average BTC transaction fee saw a steady decline from an all-time high of $62.788 in April 2021 before seeing this U-turn. This represents a 98.35% decline.
The largest single liquidation order happened on the Okex exchange. The platform recorded a total of $88.13 million worth of liquidation which represents 37.13% of the total liquidations. Longs accounted for $209.66 million or 88.33% of the total liquidations seen in the last 24 hours.
