Bitcoin and XRP on the decline: No more recreation?

THE bull run is it imminent or distant? No one can dispute that recent events have been in favor of bitcoin and XRP, Many have believed that the feast times finally arrived. But to believe the turn of things, the crypto community still needs to be patient.

Bitcoin declines again

When BTC crossed the $20,000 mark in mid-Januarythe cryptosphere was raining predictions of price around 6 figures. Even CZ, the boss of Binance, delivered a prediction of a bitcoin bull run, the realization of which only takes about twenty months.

And then came the requalification of XRP by Analisa Torres, the judge in charge of the Ripple vs SEC case. When the latter ruled that XRP has nothing of a titleBTC achieved an impressive record a few hours later: $31,890 each.

With such performance, bitcoin has reached a new high since June 2022. Analysts have argued on occasion that with XRP, The King is stimulating the bull market.

Except that cryptocurrencies have a characteristic that investors fear so much, volatility. As soon as July 14 was coming to an end, bitcoin was already trading at $30,100.

At the time of writing, the queen of cryptos is valued at $30,345.

XRP, the party is over

XRP also had its share of praise on the day of July 13. She was close to $0.82 after Judge Torres said he has nothing of a security. More than 60% increase, enough to motivate American exchanges to relist Ripple’s crypto.

Also, XRP has stopped wowing its fans with the 12% decrease evoked by Bitcoin System.

Disturbing data on liquidations

In just 4 hours, $130 million have been the subject of liquidation in the cryptocurrency market. $116 million was in long positions. This is enough to motivate the price reductions mentioned above.

$242.83 million liquidated by 74,044 traders in just 24 hours – Source: TradingView

For bitcoin, it is $22.65 million. Ethereum followed with $11.73 million. XRP comes in 3e position with 4.33 million and Litecoin with 3.31 million.

Also, we’ll note bitcoin’s open interest-weighted funding rate of +0.0058%. This confirms that there are more long positions than short positions at the moment.

The volume-weighted financing rate of BTC is displayed at more than 0.0079%. Since it is significantly lower than bitcoin’s open interest-weighted funding rate, there is reason to say that volume on exchanges with a lower funding rate outpaces that of exchanges with a higher funding rate.

In other words, bitcoin futures are seeing lower liquidity.

And finally, this drop would have correlations with the layoff of a thousand employees at Binance. The sale of 9,825 bitcoins by the US government also has something to do with it.

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