Bitcoin Slides Below $29,000 as Market Braces for Further Correction
Bitcoin's price just dropped below the $29,000 level, marking the first time in 10 days. At the time of writing BTC is trading at $28,934 after a 3.7% drop in the past 24 hours.
According to a CNBC report on Wednesday, citing Joel Kruger, market strategist at forex and crypto platform Lmax Group, the most recent cryptocurrency sell-off is a much-needed correction following this year’s rally, and investors are profiting as a risk-off trend appears in global markets.
Market correction incoming?
The global inflation signals are causing the risk-off mood. On Wednesday, the U.K. reported a 10.1% annual increase in the consumer price index for March, exceeding projections for a 9.8% gain.
Lmax Group tweeted on Thursday that the crypto market “has been forced to have a serious rethink about how it has been pricing” in terms of monetary policies.
Furthermore, U.S. Securities and Exchange Commission Chair Gary Gensler’s testimony before Congress on Tuesday was another negative factor, as he stated that much of the cryptocurrency industry’s business model had been constructed around non-compliance with securities regulations.
In a recent interview, market expert Soloway expressed his concern about the recent statements by the Federal Reserve.
He has predicted that a sharp downturn will occur in the stock market, impacting the cryptocurrency market.
Mike Novogratz, Galaxy Digital’s CEO, recently emphasized that he wants Bitcoin to grow steadily and sustainably rather than experience a sudden surge that could be detrimental to the industry.
Liquidations in crypto
The crypto market experienced a total of $300.10 million in liquidations within the past 24 hours. This sell-off affected traders who had taken long positions in the market.
The bulk of the liquidations took place on ByBit, Binance, and OKX, which collectively accounted for more than 80% of the total liquidations. A majority (89%) of these liquidations involved long positions. Other exchanges, such as Huobi, CoinEx, and Bitmex, also saw a significant number of liquidations.
A total of 88,379 traders were affected, with the most substantial liquidation being a $3.92 million LTC-USDT long position on Binance.
In the last 24 hours, the total crypto market capitalization has decreased by 4.02% to $1.22 trillion. The total trading volume in the last day increased by 33.08% to $62.36 billion.
Ethereum’s price also dropped, losing hold of the $2,000 price support, along with the top 10 non-stablecoin tokens. ETH is currently trading at $1,954.