The crypto market is again in the red once more after a week of stabilization. Cryptocurrencies are once again falling as investors started to grow accustomed to the increase. In a similar line, the crypto market liquidated around 62,000 traders.
The decline of ether and bitcoin (BTC) (ETH)
The most popular cryptocurrency, bitcoin, abruptly dropped after a week of bullishness. According to information from TradingView, the cryptocurrency is currently trading at $19,036. The majority of cryptocurrencies managed to gain value last week.
BTC has maintained a position above its $20,000 support after spending a long time bouncing above and below it. As a result, bitcoin has decreased by 3.72 percent during the past day. From $1.27 trillion in November to less than $377 billion now, its market value has decreased.
Ether (ETH), the second-largest cryptocurrency by market capitalization, declined as well because the majority of cryptocurrencies follow the direction of BTC. In fact, Ethereum is now trading at $1068, down 6.7 percent. Currently, the bitcoin market is suffering significant losses, and investors are not exempt.
Cryptocurrencies are gaining less traction
Almost 62,000 cryptocurrency traders liquidated their positions in the crypto industry during the current roaring slump. Approximately $62 million worth of ETH has been liquidated in the last day. At 59.95, Bitcoin comes in second. Over $180 million was liquidated in total during this time. This downward trend has various causes. Miners’ selling pressure, the likelihood of another Federal Reserve rate increase, and declining crypto trade volumes are a few more factors.
The trading volume of cryptocurrencies was 367.6 billion dollars on May 20, 2021, compared to 50 billion at the time. Many miners are being compelled to liquidate their assets in order to survive the bitcoin crisis. Long-term investors have been incurring losses ever since bitcoin’s price dropped below $30,000 per unit.
Investors are compelled to sell their bitcoins to cover losses when the market is uncertain. Some long-term investors and miners choose to accept the losses. Others, meanwhile, are taking it safe because there are no signs of a market comeback.
