Bitcoin hovers around $57k as liquidity reaches $295 million.
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Bitcoin and Ether experienced significant liquidity in the last 24 hours totaling more than $295 million. Despite the market downturn, the options market is optimistic about Ether's future price increase.
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Bitcoin fell below $60,000 under heavy selling pressure, with recent lows reaching $57,800. The sell-off sparked more than $77 million in long bitcoin outflows over the past 24 hours, contributing to a total of $295 million in market-wide outflows.
The broader crypto market suffered heavy losses, with Ether, the second largest cryptocurrency, facing more than $71 million in liquidations, of which $62 million were long positions. Solana SOL and Dogecoin (DOGE) suffered losses among major tokens.
Gox exchange and potential selling pressure from the sale of miners contributed to the market decline. Mt. Gox is set to begin distributing assets stolen from customers in a 2014 hack in 2024, adding to the selling pressure for both the Bitcoin and peripheral crypto markets.
According to a liquidity heatmap from CoinGlass, Bitcoin (BTC) and Ethereum (ETH) dominate with $92M and $72M in liquid payouts, respectively, followed by smaller volumes for other cryptocurrencies over the past 24 hours. The map visualizes the volume and amount of liquidity in various digital assets. High flows occur from Binance, OKX and Huobi.
Investment firm QCP Capital in Mt. Gox expects a choppy market in the next quarter due to uncertainty surrounding the release of Bitcoin supply.
“We expect a bearish Q3 for BTC as the market is uncertain about supply from Mt. Gox release,” QCP said in a Thursday broadcast via Telegram.
Despite the recent decline, derivatives traders are positioning for price increases in the coming months, particularly for Ether. Analysts at QCP Capital say the options market remains optimistic as demand for Ether calls for September and December expirations continues to be heavily skewed.
The market decline highlighted signs of mining. According to a separate report from CryptoQuant, the total daily earnings among miners fell from $79 million on March 6 to $29 million, indicating that they have been underpaid since at least April this year.
As the crypto market grapples with these challenges, traders and investors are focused on potential price reversals, with the adoption of spot Ethereum ETFs that will finally launch in mid-July, focusing on historical patterns related to mining.
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