Bitcoin returns to $35,000 levels after a record wave of liquidations of buying positions
Ethereum also could not hold for long above the $2000 level and returned to the 1985 level.
Bitcoin gave up levels above $36,000 yesterday evening, after having touched record highs this year at $38,000 in the previous days. Ethereum also could not hold for long above the $2000 level and returned to the 1985 level. Meanwhile, Solana is still trying to regain its record levels again, as it approaches the $60 level again at approximately 7:30 a.m. GMT. The price of the Ripple token’s, XRP, fell to its lowest level in ten days, near the $0.6300 level, after yesterday’s sudden rise that brought it to the 0.7471 level.
It appears that the upward momentum supported by high investor sentiment has actually begun to fade, prompting buyers to suddenly take their profits and liquidate their long positions.
It seems that the market has become convinced that rises above the 35,000 level are not justified or supported by real news at the present time. The previous highs were based solely on the hope of soon approval from the Securities and Exchange Commission (SEC) for the launch of spot bitcoin ETFs.
According to data provided by CoinGlass, more than $291 million worth of long positions in various crypto were liquidated during yesterday alone. While bitcoin accounted for the largest share of these qualifiers, with more than 120 million.
During the past 24 hours, the liquidations of bitcoin purchasing positions represented more than 94% of the total liquidations amounting to $119.5 million.
In addition to this noticeable decline in sentiment yesterday, the crypto market has exposed itself to more embarrassment and criticism over transparency and fraudulent risks after the sudden rise in the XRP price. Yesterday we saw news that the asset management giant, BlackRock, applied to launch a XRP ETF, which later turned out to be fake news and that the document that sparked these rumors was forged.
While legal experts and knowledgeable people in this field do not believe that this incident may constitute a legal justification for the SEC to reject the applications to launch the spot crypto ETFs under the pretext of fraudulent risks, weak price transparency, and the possibility of market manipulation.
This incident came after a rumor we had heard in recent weeks about the SEC approving BlackRock’s application to launch its own bitcoin spot ETF.
But on the positive side, last week witnessed more flows into crypto-related products, amounting to about $293 million, according to data provided by CoinShares.
As usual, bitcoin accounted for most of those flows at more than $240 million. While Ethereum continued to record net inflows for the second week in a row at more than 49 million, it is gradually approaching erasing the net outflows it recorded since the beginning of the year, which decreased to 58 million. Solana also managed to attract more investor funds with more than $12 million in positive net flows, bringing net flows to about $121 million since the beginning of the year.
In addition, according to evidence from Glassnode, stablecoins have returned to recording positive flows for the first time in a year and a half. It is believed that these flows reflect a willingness to feed the buying pressure that investors may undertake through margin trades conducted through stablecoins, according to analysts at CoinDesk.