The cryptocurrency market seems to be experiencing a downward trend today. The world’s largest cryptocurrency, Bitcoin, has fallen below the $100,000 level and is trading at $96,142 at the time of writing.
Most of the crypto news today appeared positive. Major Bitcoin investor MicroStrategy announced that it had purchased another $2.1 billion worth of Bitcoin at an average price of $98,783, and the company now owns $25.6 billion worth of Bitcoin.
Meanwhile, some Amazon shareholders have suggested that the company follow MicroStrategy’s lead and hold 5% of its assets in Bitcoin. The more embedded BTC becomes in the mainstream financial system, the better it is likely to perform, so it’s an interesting development.
In more negative headlines, media outlets reported that El Salvador would be rolling back some of its Bitcoin laws in order to secure loan agreements from the International Monetary Fund (IMF), the World Bank, and the Inter-American Development Bank. El Salvador invested heavily in Bitcoin a few years ago, making it legal tender in the country in 2021 and accumulating a significant amount of BTC. The country has made hundreds of millions in profits from this move.
Ultimately, the most likely reason for the pullback appears to be that investors are taking a break, which is healthy during bull markets.
On the other hand, the decline in question also triggered liquidations in the cryptocurrency market. With the impact of Bitcoin losing about 4% in value in the last 24 hours, there was a massive liquidation wave of $864 million in the cryptocurrency market. $767 million of these were in long positions.
Interestingly, neither Bitcoin nor Ethereum experienced the most liquidation. The cumulative liquidation observed in “other altcoins”, excluding the largest cryptocurrencies, was the most liquidated in the last 24 hours. Ethereum came next with $111 million, and Bitcoin came third with $105 million. On the individual altcoin side, the most liquidations were observed in Dogecoin, Solana, XRP and PEPE, respectively.
*This is not investment advice.
