- There have been more long liquidations in the new week.
- The overall market cap remained at around $2 trillion.
As a seasoned researcher who has navigated numerous market cycles in my career, I find myself both intrigued and cautious about the current state of the cryptocurrency market. The high volume of liquidations in the past week serves as a stark reminder of the inherent volatility in this space.
Last week saw a substantial increase in selling off or closing positions (liquidation volumes) across the cryptocurrency market, due to price changes. It was primarily short-term traders who faced losses from these closures, as Bitcoin [BTC] exhibited some growth.
Currently, memecoins are experiencing a drop in their market value, which is creating a sense of caution as we look towards the upcoming crypto week.
Liquidations in the crypto week ahead
Over the past week, I’ve observed that the turbulent market conditions resulted in approximately $690 million worth of liquidations, as per data sourced from Coinglass. This underscores the heightened risks and uncertainties prevalent within the cryptocurrency sector, a fact that I find quite noteworthy.
Significantly, approximately $418 million was generated from liquidations due to short positions, implying that numerous traders speculating on price drops were taken aback by the recent price surges.
Instead, last week recorded a larger number of long liquidations, amounting to approximately $276 million.
This transition signified a flip in investor attitude towards the market, with those anticipating profits being compelled to sell off their holdings because of the unpredictable fluctuations in prices.
Starting this new week, there’s been an observable rise in extended closings, which might hint at difficulties ahead for those who are wagering on future price rises.
This shift adds to the uncertainty surrounding the market direction for the crypto week ahead.
Memecoins face further decline
For several weeks now, memecoins have been experiencing a continuous decline. Unfortunately, the upcoming crypto week doesn’t seem promising either.
As a crypto investor, I’ve noticed a significant dip in the market cap of meme coins this month. The current figure stands at approximately $35 billion, a drop of more than $3 billion from the start of the month.
In simpler terms, well-known meme tokens like Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) have dropped over the past day, hinting that the downward trend for these meme coins might persist further.
Cautious optimism ahead
Although Bitcoin’s recent surge and liquidation figures hint at a possible change in investor feelings, the increase in long liquidations shows that traders are still uncertain about the market’s future trajectory.
Conversely, memecoins began the week on a downward trend, causing their market caps to shrink and fueling pessimistic feelings among investors.
Looking forward, it appears that the upcoming crypto week is set to be quite dynamic, so keep a close eye on crucial thresholds and movements within multiple digital currencies.
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2024-09-16 21:11