Major cryptocurrencies on Thursday evening dropped as traders betting on long positions faced substantial liquidation.

What Happened: According to the data from Coinglass, the past 24 hours have seen over $200 million worth of cryptocurrency long positions liquidated. 

Specifically, for BTC, longs worth over $65 million were liquidated, while for ETH, over $27 million in longs faced the same fate. 

The total number of traders liquidated in this period stands at 90,781, with the total liquidation amount reaching $227.91 million for both long and short positions. Notably, the largest liquidation order occurred on Binance for BTC-USDT, amounting to $7.31 million.

Since the introduction of the approved spot Bitcoin ETFs on Jan. 11, the price of Bitcoin has experienced a modest increase followed by a subsequent decrease of approximately 13%.

Data updated as of Wednesday reveals that the new spot ETF issuers collectively acquired over 68,000 bitcoins within their first week of trading. On the other hand, Grayscale’s GBTC has offloaded approximately 40,000 Bitcoins, resulting in a net increment of about 28,000 Bitcoins to the Bitcoin ETFs.

Top Gainer (24 Hour)

The global cryptocurrency market cap now stands at $1.68 trillion, showing a 0.92% decrease in the past 24 hours.

On Thursday, tech companies, spearheaded by Apple, drove the market upwards, propelling the major averages into positive territory.The tech-heavy Nasdaq Composite surged 1.35% to close at 15,055.65, while the S&P 500 advanced 0.88% to end at 4,780.94, now only 15.62 points, or 0.33%, away from its closing record.

The 10-year Treasury yield rose to 4.14% as fresh jobs data indicated ongoing tightness in the labor market. First-time filings for unemployment insurance totaled 187,000 for the week ended Jan. 13, marking a decrease of 16,000 from the previous period, as reported by the Labor Department on Thursday. This surpassed economists’ consensus estimate of 208,000, according to data gathered by Dow Jones.

Investors are apprehensive that a thriving labor market, combined with robust consumer spending, as evidenced in Wednesday’s retail sales report for December, may lead to fewer rate cuts from the Federal Reserve than initially anticipated.

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Analyst Notes: Cryptocurrency analyst Michael Van de Poppe observed significant market movements, noting that liquidity has dipped below key levels. 

“Beneath $41K is the start of buying the dip; markets are down ~15-20% already. If it drops to $36-39K, you can expand. I love buying dips.”

Pseudonymous cryptocurrency analyst Rekt Capital said,  “The Macro Diagonal continues to act as resistance. History suggests this will continue for a few more months. After the Halving however, BTC should be ready to break this Macro Diagonal & turn it into new support to springboard into new All Time Highs”

Santiment, an on-chain analytical firm, has reported that traders maintain long-term optimism regarding the approval of 11 initial Spot Bitcoin ETFs by the SEC on January 10.

“However, the FOMO surrounding the approvals arguably helped mark a local #crypto top, as many experts believed that the foregone conclusion of these approvals was already ‘baked in’ to the market’s prices at the time the announcements were made. After $BTC dropped as low as $40.6K Thursday (a 16.9% plummet from peak market value last week), watch to see if the crowd’s narrative surrounding these ETF’s switches to associating them with words like #cam or ripoff or disaster.”

Photo by Matt Benzero on Shutterstock

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