The cryptocurrency market just took a tumble, with the global market cap experiencing a 5% drop in the last 24 hours, settling at roughly $2.42 trillion. This correction rippled through the market, with Bitcoin (BTC) and Ethereum (ETH) leading the pack downwards. Both giants shed around 5% of their value, currently trading at $63,277 and $3,089 respectively.
The heightened volatility also resulted in roughly $300 million worth of liquidations, primarily impacting long positions.
Just yesterday, Bitcoin bulls were rejoicing. The go-ahead for spot BTC and Ether ETFs in Hong Kong sparked a bullish outlook, lifting the market after a choppy weekend. However, the euphoria was short-lived. Senior ETF analyst at Bloomberg, Eric Balchunas, cast a dampener on the celebrations. He highlighted the limited size of the Hong Kong market, suggesting they’d be fortunate to attract even $500 million in inflows. To add to the dampener, Chinese investors are currently restricted from directly investing in these Hong Kong ETFs.
Read More About This: Hong Kong Assumes Crypto Leadership with Bitcoin & Ethereum ETFs; USA Left Behind?
As if market uncertainty wasn’t enough, the looming crisis in the Middle East is adding fuel to the fire, keeping traders on edge. This geopolitical tension is further amplifying the fear and uncertainty surrounding cryptocurrency prices.
With less than five days to go for the much-anticipated fourth Bitcoin halving, there’s a glimmer of hope on the horizon. This event is expected to exacerbate the existing supply-demand imbalance, potentially pushing prices upwards. However, not everyone is convinced.
Markus Thielen, founder of 10x Research, warns of a potential price correction looming over both the crypto and stock markets. Despite this cautionary note, Thielen suggests that some highly-valued crypto assets might experience a near-term rebound due to the anticipated interest rate cuts in the United States.
Popular crypto analyst Michaël van de Poppe offers some technical insights. His analysis suggests that Bitcoin has established a strong support level around $61,441. However, he warns traders to brace for a potential drop towards $55,000 if this support crumbles.
Despite this caution, Poppe remains optimistic, believing that Bitcoin will likely hold onto its current level in the lead-up to the halving, potentially even reaching a new all-time high soon.
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