Monday trading sessions saw a widespread drop across the crypto market, with more than $164 million worth of crypto assets liquidated over the past 24 hours.
Bitcoin price dropped 3% to $28,900 levels and is currently hovering around $29,280. Over the past 24 hours, BTC price has hit a low of $29,068 and a high of $30,330 respectively.
In the last 24 hours, 54,799 traders were liquidated, bringing the total liquidation amount to $164.42 million. The single largest liquidation order was OKX – BTC-USDT-SWAP, worth $2.57 million
The liquidation of Longs coincided with the rally of the greenback against major assets. The US Dollar Index (DXY) effectively rose to 101.25, prompting a price correction in Bitcoin and Ethereum. Traders should keep an eye on the DXY for major macro events this week and expect a directional move after a week of volatility.
Global bond yields fell early in the last week of July, with 10-year US Treasury yields dropping to 3.81% on concerns of a slowing global economy and the possibility of a recession. Traders are also preparing for significant interest rate decisions by the US Federal Reserve, ECB, and Bank of Japan.
The CME’s FedWatch tool shows a 99.8% chance of a 25-basis-point rate hike at the July 26 FOMC meeting, with the Fed Funds rate between 525 and 550.
Contrary to popular belief, opportunistic units are the most active whales, analyst firm Glassnode revealed in the latest edition of its weekly newsletter, The Week On-Chain.
As Glassnode shows, so-called short-term holders (STH), investors who hold their coins for up to 155 days, have become significantly more common.
After all, even the largest group of investors, the whale, is made up of several of his STHs.
“Short-term holders’ dominance in currency flows has exploded to 82%, which is now well above the long-term range of the last five years (usually 55% to 65%),” explains Glassnode. We might infer from this that a significant portion of the current trading activity is being driven by cetaceans (who are categorized as STH) engaged in the 2023 market.
Interest in BTC/USD’s short-term moves has been evident even before May. Since the FTX crisis in late 2022, speculators have become more inclined to take advantage of volatility, both up and down.
All good