$315 million in 48 hours is as volatile as Cryptos Go.
The cryptocurrency market has seen around $315 million worth of liquidity in the past 48 hours. This disruption is caused by the recent volatility in Bitcoin and altcoins.
Bitcoin, the main cryptocurrency, resisted the decline during this period, falling to a low of $50,670 before recovering to $51,873.
Crypto market liquidity has reached 315 million dollars
According to transaction data from Coinglass, the crypto market saw an inflow of $314.82 million between February 16 and the reporting period. Long traders lost $186.1 million, compared to short traders who lost $128.72 million over the same period.
These flows coincided with Bitcoin price entering the $50,000 range and Ethereum sliding above $2,800 to $2,724. Other prime properties such as Solana and Avalanche have also experienced moderate declines.
Binance users have taken the brunt of this market turmoil. They suffered a loss of 149.27 million dollars, which is about 50% of the total liquidity in the crypto market. This is not surprising considering Binance's status as the largest trading volume. Traders on other platforms such as OKX, ByBit and Huobi also suffered significant losses.
Bitcoin price is at risk of correction to $46,000
BeenCrypto's global head of news, Ali Martinez, warned that Bitcoin could face an 8 percent correction if it fails to quickly reach the $52,000 level. He emphasized that such a dip could see BTC drop to the $48,000 to $46,500 level, where major support is found.
“If Bitcoin fails to recover the $52,000 level quickly, it could face an 8% correction, which could drop to $48,000 and $46,500. In this price range, more than 1 million addresses hold more than 544,870 BTC, which shows significant support,” said Martinez.
Despite Martinez's warning being short-sighted, popular blockchain analytics firm IntoTheBlock remains bullish. The company has assigned an 85% chance that BTC will hit a new all-time high within six months.
Read more: Bitcoin price prediction for 2024/2025/2030
IntoTheBlock attributes this optimism to a number of factors, including the expected halving event to reduce BTC inflation, the anticipated Fed rate cut, and strong institutional interest in Bitcoin.
“Given current momentum, expected Fed rate cuts and strong institutional interest in Bitcoin, we tip Bitcoin to reach 85% of all-time highs in the next six months,” IntoTheBlock explained.
Additionally, the company has made significant progress in its stock of BTC whales. The reason for this increase is due to the ease of access for institutions to acquire bitcoins.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions. Please note that our terms and conditions, privacy policies and disclaimers have been updated.
