• Over $140 million in crypto assets has been liquidated in the past 24 hours after Bitcoin (BTC) sharply retraced from its 2023 high.
• Market intelligence firm Coinglass revealed that most of the liquidations were long positions on prominent crypto exchanges like Binance, OKX, Bybit and Huobi.
• The dip in BTC’s price comes as the ADP report showed that employment levels exceeded expectations, raising concerns about further interest rate hikes.
Crypto Liquidations
Over $140,000,000 worth of digital assets have been liquidated from prominent crypto exchange platforms as Bitcoin (BTC) suddenly dips from its 2023 high. According to market intelligence firm Coinglass, just under $140 million was liquidated during this period with most of them being long positions on leading exchanges like Binance, OKX, Bybit and Huobi. The affected digital assets include Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Solana (SOL), XRP, Polygon (MATIC), Dogecoin (DOGE) and Pepe (PEPE).
ADP Report
The dip in BTC’s price and spike in liquidation activity comes as the new ADP report, which tracks the level of employment in the US, greatly exceeded expectations prompting market fears of further interest rate hikes. John Lynch, Chief Investment Officer at Comerica Wealth Management said to CNBC that “the market clearly would have preferred an in-line number but because it was more than double expectations that really ratchets up the fear factor that the Fed would have to be more aggressive.”
Implications
The sudden crash in Bitcoin’s value has had a ripple effect on other digital assets with many seeing significant losses throughout yesterday’s trading session. Despite this overall decline however there are still some coins that are managing to weather this storm relatively well and even go up against all odds such as Filecoin which is currently up by 5%.
Analysis
Analysts believe that this could be a sign of a possible bull run for cryptocurrencies given their resilience against macroeconomic events such as these reports. This is similar to what happened at the beginning of 2021 when despite pandemic related economic woes cryptocurrencies managed to remain robust and even increase significantly over time.
Conclusion
Despite today’s unexpected retrace by Bitcoin and subsequent liquidations across various cryptocurrency exchange platforms it is important for investors to remember not to panic but instead use this opportunity to assess how both their short-term investments strategies can be adjusted accordingly as well as their long-term investment goals sensibly revised with an eye towards future developments within the blockchain industry.
