Introduction:
The cryptocurrency market witnessed a brief downturn as BTC slipped below $41,000 and Ethereum below $2,200 on Monday. After a two-month rally, this correction led to a notable drop in prices, triggering liquidations in the futures market. Despite the short-term decline, both BTC and Ethereum remain higher than their starting values for the month.
Bitcoin’s Correction: A Closer Look
Bitcoin:
is currently trading at $40,758, reflecting a 7% decline in the past day. The market observed $330 million in crypto futures contracts liquidated as BTC fell below $43,000, bringing total liquidations to $516 million, as reported by CoinGlass.
Ethereum Follows Suit
Ethereum, the second-largest cryptocurrency, experienced a 7% drop, reaching $2,185. While this marks a decrease from recent highs, Ethereum remains 7% higher than its starting value for the month, showcasing resilience amid market fluctuations.
Altcoins Facing Pressure
Altcoins, including ORDI (ORDI) and Pepecoin (PEPE), faced significant declines. ORDI, which surged last week, witnessed a 14% slump, settling at $45.11. Similarly, Pepecoin, previously on the rise, declined by 13% to $0.00000138.
Institutional Interest in Solana and Avalanche
Amid the market correction, a CoinShares report highlighted institutional interest in Solana (SOL) and Avalanche (AVAX). Exchange-traded products tracking these assets received $5 million in deposits last week, indicating sustained interest despite market volatility.
Binance USD (BUSD) Challenges Stability
Binance USD faced a peg loss, dropping to $0.97 temporarily. This stablecoin, though defunct, still has approximately 1.4 billion tokens in circulation. BUSD’s decline is attributed to most margin trading and futures contracts being automatically closed, according to a recent Binance blog post.
One Comment