As the crypto market falls for the second day in a row, investors are feeling the consequences of major altcoin liquidations. A wave of capitulations which now represents more than 440 million dollars in just 24 hours.
The crypto market winter continues
The last 24 hours have put a strain on the crypto market. Overall capitalization fell 3%, reaching $2.45 billion. At the heart of this storm, almost all of the top 100 digital assets suffered significant losses.
Bitcoin lost 2% of its value, while Ethereum plunged 3%. However, altcoins have weathered the blows the hardest, with dizzying falls reaching up to 17% for major tokens such as Fantom (FTM), Enjin (ENA), SUI and Uniswap (UNI). In this context, the dominance of Bitcoin has even crossed the 56% mark, a level not seen since last March.
According to CoinGlass data, this turmoil caused the liquidation of 161,137 traders, totaling a whopping $443.93 million. Ethereum suffered $75 million in long liquidations, while Bitcoin accumulated $47 million.
The shadow of massive unlocks hangs over altcoins
Many analysts identify recent massive token unlocks as the main factor behind this altcoin collapse. The company 10xResearch highlights the dumping of $483 million in tokens from projects such as Aptos, Immutable X, Strike, Sei Network, Arbitrum, ApeCoin and Uniswap.
“ Early investors and venture capital funds appear to be under enormous pressure to exit. These massive flows lead to the fall of Bitcoin“, explains the company. Moreover, recent data reveals that Bitcoin ETFs in the United States recorded more than $145 million in outflows on June 17.
Michael Van de Poppe, a renowned crypto analyst, believes that this tumble represents the final phase of capitulation for altcoins. “ This is the usual cycle, I have already observed it in 2020“, he comments.
This violent correction, although it reflects a turmoil that seems far from over, could nevertheless constitute a decisive turning point for the crypto market. Indeed, such events, as painful as they are, have often served as a catalyst for market reorganization.
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