Crypto enthusiasts witnessed a significant downturn in the market, with over $400 million in bullish bets being liquidated as Solana and Dogecoin led a slide in major cryptocurrencies.
The CoinDesk 20 index, which monitors major tokens excluding stablecoins, saw a decline of just over 4.5%.
In the past 24 hours, major tokens experienced losses of up to 8%, with bitcoin reversing its gains from last week due to selling pressure stemming from a stronger dollar. Data reveals that bitcoin dropped by 5%, while ether (ETH), Cardano’s ADA, and BNB Chain’s BNB faced similar losses.
Solana’s SOL saw a 7% decline, trading at $185 after briefly hitting $200 on Monday. Additionally, Dogecoin (DOGE) suffered a drop of over 8%. Bitcoin Cash’s BCH dropped by 10% due to profit-taking after a 40% surge in the previous week. The rally was fueled by anticipation surrounding the network’s scheduled halving event on April 4th.
The broad-based CoinDesk 20, an index excluding stablecoins that tracks major tokens, declined by just over 5%.
Long positions, indicating investments in higher prices, witnessed over $400 million in liquidations, whereas short positions, representing bets against, experienced a comparatively smaller $85 million in liquidations. Liquidation occurs when a trader lacks sufficient funds to maintain a leveraged trade.
Analysts from crypto exchange Bitfinex communicated to CoinDesk via email that some long-term investors sold off their holdings in the past week. They expect Bitcoin to stay within a certain range in the upcoming weeks, expressing, “We predict that Bitcoin will likely consolidate within a specific range, as previously inactive supply, particularly among Long-Term Holders (LTHs), is being sold (though at a relatively smaller scale compared to previous bull market peaks).”
Additionally, they observed strategic profit-taking among Long-Term Holders (holders of BTC for more than 155 days).
Elsewhere, FxPro senior market analyst Alex Kuptsikevich highlighted bitcoin’s struggle to surpass the $71,000 mark, with broader markets exhibiting caution towards riskier assets. He stated, “Bitcoin’s fourth attempt to consolidate above $71K this week was unsuccessful.
The Nasdaq100 also showed some downward bias, indicating a cautious attitude towards risky assets, although the S&P500 closed at another high. Bitcoin has encountered significant resistance, with particular attention drawn to the levels of $69.5K and $68.5K.”
