If you thought the market’s bloodletting was over (in this cycle anyway), we have bad news for you.
The crypto pull back continued overnight and into Tuesday morning. Bitcoin is down 4.5% over the last 24 hours according to Nomics, racking up its second consecutive day of losses.
From the highs of $61,500 hit on Sunday, Bitcoin traded as low as $53,000 in the last 24 hours, representing more than a 10% slide. For futures markets, the picture was even bleaker.
In the last hour alone, nearly $500M in #Bitcoin Longs got liquidated, this is a historic ATH.
There is excess greed in the system, with 60% of contracts levered 20x or more.
According to a tweet from Glassnode co-founders Jan & Yann, there were $500 million liquidations of Bitcoin long positions - bets that the price would go up - in one hour. That was the most that has ever been liquidated, according to Glassnode. The founders chalked up the massive losses to “excess greed in the system”.
But others pointed out that the losses were even greater than that. Exchange data company Bybt reported that losses were north of $1 billion.
$1.12 billion worth of longs liquidated in the past hour
Such sizeable losses have had an impact on market sentiment, according to the Fear and Greed Index. During the last bull run, sentiment was consistently in the 90s, suggesting that greed was driving the price up. This month however, sentiment has slid back in to the 70s, suggesting the exuberance of February has cooled.
Taking a closer look at other market measurements over on Market Milk, sentiment has pulled back into neutral territory, suggesting investors are sitting this round of turbulence out waiting to see if this slump is part of Bitcoin’s broader pattern of surges and pullbacks or if something larger is afoot.
The market stays neutral. IMAGE: Market Milk
Taking a look at what’s happening on Wall Street, crypto investors will have reasons to be cheerful.
The Dow Jones rose by over 100 points and the S&P 500 Index also inched to new highs, thanks to the finalising of the $1.9 trillion stimulus bill that's poised to spur consumer spending and ignite economic growth.
The Dow Jones on a tear. IMAGE: Google
This has led a slew of economists to upgrade their expectations for the broader US economy.
Goldman Sachs projected the fiscal rescue package would give the economy even greater impetus in 2021, estimating gross domestic product would expand by 6% in the first quarter.
But with a raft of good news comes a niggling feeling that all might not be well. Markets will be pouring over remarks from Fed Chair Jerome Powell - who is due to give a statement this week - for hints about whether the central bank is growing concerned about moves in the bond market, and an economy that could overheat.
U.S. payments company PayPal said Wednesday it plans to launch a new platform this fall that will link domestic digital wallets to its global network of billions of users.
Dubbed PayPal World, the system lets users of India’s UPI, China’s WeChat Pay, and Brazil’s Mercado Pago transact with PayPal or Venmo merchants abroad without opening new accounts or using cards.
“Moving money across borders is incredibly complex, and this platform is designed to make it simple for nearly two billion users,”...
MEI Pharma, a publicly traded pharmaceutical company, closed a $100 million private placement on Wednesday to refashion itself into a litecoin treasury firm.
MEI sold 29,239,767 shares of its common stock, raising roughly $100 million, Litecoin Foundation founder Charlie Lee told Decrypt. Under the agreement, the company sold its stock at $3.42 per share. Lee led the private placement alongside digital asset market maker GSR and will be joining MEI’s board of directors, according a statement fro...
A century-old Japanese textile company has become the latest financially battered firm to turn to Bitcoin as a treasury asset, announcing plans to purchase up to $5.4 million (800 million yen) in crypto to stabilize its bottom line after years of losses and muted cash flow.
Kitabo Co., Ltd., a Tokyo Stock Exchange-listed textile manufacturer that produces synthetic fibers and industrial materials, announced in a statement on Tuesday that it will begin gradually acquiring Bitcoin using dollar-cos...