Mass liquidations, geopolitical pressures, and investor fears collide, fueling today's crypto market crash. Here's what's coming next.
Bitcoin fell again, reaching $102.4k before attempting a recovery, but this triggered a broader crypto market crash.
Geopolitical tensions and unfavorable macroeconomic events have put pressure on investors' trading strategies.
Moreover, crypto prices have been severely affected. As a result, crypto traders lost $458M in liquidations in the last 24 hours alone, and more are at risk. Let’s discuss.
$458M Wiped Out In Liquidations With Crypto Market Crash
Over the past few days, the momentum of digital assets has been either strengthening or slowing down.
The same holds true today, as the fall of Bitcoin led to a broader crypto market crash, wiping out $458M in liquidations.
According to data from CoinGlass, 124,286 traders were liquidated in the last 24 hours, resulting in liquidation losses of $458M. The main liquidation is in Ethereum, Bitcoin, Solana, XRP, and others, and longs are closed, as their price drops.
Today, $BTC is down 2%, $ETH is down 4%, and XRP has lost 1.5% of its value, resulting in traders going long. Exchange data also shows that of the $458M liquidations, $412M were long and about $45M were shorts.
80-85% of long trades and other factors indicate further crypto market crash
Kingfisher’s charts show that most crypto coins are prone to long liquidations, as the majority of bets are bullish. Additionally, their report acknowledges that these tokens are vulnerable to sinking during a broader cryptocurrency market crash, which could trigger their liquidation.
Additionally, $4B $BTC options expire today on June 21st, with a maximum pain point of $105k. A huge expiration date is June 27, 2025, with a $14.2B notional value of $100k. If the price of Bitcoin remains above the downside, selling pressure may increase.
However, if it breaks past the expiration level, a short squeeze may form. Overall, uncertainty is rampant, especially around the crypto market crash.
The Israel-Iran conflict is still active, and the US has hinted at getting involved in the war, so there is more risk.