On Monday, during the Asian early market phase, the cryptocurrency market suddenly plummeted, with BTC briefly dropping to $114,000 and ETH falling below $4,200. The downward pressure persisted from the morning until the evening when the U.S. stock market opened. The reasons for this decline are varied, but the obvious underlying reason is to clear excess bullish liquidity. The sharp drop in the morning directly liquidated $130 million, while the total liquidation amount on Monday reached $580 million, with nearly $500 million of bullish positions liquidated. This shows that many people were going long on cryptocurrencies on Monday, leading to the liquidations.
The trigger on the news front was market concerns over a breakdown in negotiations between Trump and Zelensky, which introduced variables into the Russia-Ukraine ceasefire. Trump stated on social media yesterday morning that for negotiations to succeed, Ukraine must sacrifice territory, but this is something Zelensky is unlikely to agree to. Although this state of Russia and Ukraine has persisted for several years, it should not have too much impact on the market. U.S. stock index futures only saw slight declines, but it created an opportunity for liquidations in the cryptocurrency market.
Currently, Bitcoin is hovering around $116,000 and Ethereum around $4,300. If the negotiations for a ceasefire between Russia and Ukraine do not yield good results, the market is expected to continue oscillating at this level. Then we will wait for Powell's speech on Friday, at which time the market will have certain expectations regarding the prospects for interest rate cuts, which will largely determine the trends for the end of August and early September. Therefore, this week's market mainly focuses on liquidating positions, and the liquidation map can be referenced for investment.
"MICA Daily｜On Monday, the cryptocurrency market saw a liquidation of $580 million, with BTC barely holding at $116,000". This article was first published on (Blockke).
