Market Trends Post-Election and Current Sentiments
The cryptocurrency market has witnessed substantial shifts in momentum following the election of Donald Trump as President of the United States. Initially, this event catalyzed a positive surge in the market, sparking increased investor enthusiasm. However, recent observations indicate a cooling in market sentiment, leading to substantial financial repercussions, including hundreds of millions of dollars in liquidations.
$650 Million in Crypto Liquidations: What Happened?
On November 14, 2024, the cryptocurrency landscape was marked by heightened volatility, culminating in the liquidation of approximately $650 million in digital assets. This information comes from the on-chain analytics provider, CoinGlass. The data reveals that nearly 200,000 traders were impacted during this tumultuous period, with bullish traders bearing the brunt of these losses.
Specifically, bullish traders saw liquidations totaling nearly $435 million in long positions, while bearish traders encountered liquidations of around $190 million. A single, notable liquidation event took place on Binance, involving the BTCUSDT trading pair, with a value of $12.39 million. Traders involved with prominent cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) were significantly affected.
Unpacking the Decline: Why is the Crypto Market Falling?
Several factors have contributed to the recent downturn in the cryptocurrency market. A key driver is the depreciation in the value of major digital assets, accompanied by substantial sell-offs by Bitcoin miners. Within a 24-hour timeframe, Bitcoin, Ethereum, Solana, and Dogecoin saw their prices dip by 4%, 4.2%, 2.6%, and 3.65%, respectively.
Notably, Bitcoin miners have offloaded nearly 25,000 BTC, valued at approximately $2.25 billion, as the cryptocurrency’s price approached the $93,400 mark. This data, provided by CryptoQuant, highlights the largest miner sell-off since May 2024, signaling potential pressure on market prices and a possible continuation of this downward trend.
The confluence of miner sell-offs and declining asset prices has likely exacerbated the wave of liquidations experienced by traders, creating a challenging environment for market participants.
