Leading cryptocurrencies slid alongside stocks on Monday, as investors rotated away from risk-on assets.
| Cryptocurrency | Gains +/- | Price (Recorded at 8:20 p.m. ET) |
|---|---|---|
| Bitcoin (CRYPTO: BTC) | -1.11% | $86,738.52 |
|
Ethereum (CRYPTO: ETH) |
-1.92% | $2,802.70 |
| XRP (CRYPTO: XRP) | -2.82% | $2.02 |
| Solana (CRYPTO: SOL) | -1.00% | $127.47 |
| Dogecoin (CRYPTO: DOGE) | -2.89% | $0.1361 |
More Trouble For Crypto
Bitcoin plunged below $84,000 in the early trading hours, marking its worst performance since mid-April. The apex cryptocurrency saw a 72% jump in trading volume over the last 24 hours, signaling high selling pressure.
Ethereum also fell below $2,800, erasing all of its gains in the last 10 days or so. XRP and Dogecoin also recorded notable declines.
Cryptocurrency-tied stocks such as Strategy Inc. (NASDAQ:MSTR) and Coinbase Global Inc. (NASDAQ:COIN) felt the pinch, falling 3.25% and 4.76%, respectively, during the regular trading session.
Benzinga Edge delivers real-time stock alerts, trade ideas, and professional investing tools to help you navigate the market. Find out more about COIN and MSTR here.
Cryptocurrency liquidations hit $587 million in the last 24 hours, according to Coinglass, with $460 in bullish longs wiped out.
Roughly $500 million in Bitcoin long positions could be liquidated if the leading cryptocurrency breaks below $83,000.
Bitcoin's open interest increased by 0.12% in the last 24 hours. An increase in Open Interest when prices are falling typically suggests that new short positions are being opened.
The “Extreme Fear” sentiment grew stronger, according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
| Cryptocurrency (Market Cap>$100 M) | Gains +/- | Price (Recorded at 8:20 p.m. ET) |
|---|---|---|
| pippin (PIPPIN ) | +38.08% | $0.1924 |
|
Folks Finance (FOLKS) |
+23.84% | $13.84 |
| Merlin Chain (MERL ) | +14.52% | $0.3919 |
The global cryptocurrency market capitalization stood at $2.93 trillion, shrinking by 2.98% in the last 24 hours.
Stocks Mirror Crypto Decline
Stocks, like cryptocurrencies, began the new trading week on a negative note. The Dow Jones Industrial Average retraced 427.09 points, or 0.9%, to settle at 47,289.33. The S&P 500 sank 0.53% to finish at 6,812.63, while the tech-heavy Nasdaq Composite shed 0.38% to end at 23,275.92.
Meanwhile, expectations for a Federal Reserve rate cut next week grew stronger, with traders pricing in an 87.5% chance of a 25-basis-point cut, up 84.4% from the week before, according to the CME FedWatch tool.
Powerful BTC Rallies On The Way?
Blockchain analytics firm CryptoQuant noted a sharp fall in Binance's "Bitcoin to Stablecoin Reserve Ratio," breaking its all-time low since 2018.
In other words, the volume of stablecoins on Binance relative to available Bitcoin is at its highest level in over 6 years.
"History shows that hitting such lows often precedes powerful Bitcoin rallies, simply because the liquidity required to fuel a price surge is now fully available on the exchange," CryptoQuant predicted.
Michaël van de Poppe, a widely followed cryptocurrency analyst, highlighted the significance of $83,400 as Bitcoin's support.
"If that doesn’t provide enough buying pressure, then we’re going to test the low beneath $81,000 for support. Probably in the next few days," the analyst projected.
Photo Courtesy: vinnstock on Shutterstock.com
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