The crypto market fell sharply on Monday, with Ethereum below $4,200 and Bitcoin below $113,000, causing heavy liquidation.
It opened in the crypto market red on Monday, with its total market capitalization below $4 trillion, falling 3.7% today.
Data from Defiant’s pricing page shows Bitcoin (BTC) trades of nearly $112,800, down 2.5% per day, as they were unable to lose profits last week beyond the $113,000 level. Ethereum (Eth) is currently trading nearly $4,190, seeing a sharp drop of 6.4% that day.
All of the top 30 tokens by market capitalization are solidly red today. Of the top 10 large caps, today’s biggest losers are Dogecoin (Doge) at nearly 10% and Solana (SoL) at over 7%. Doge has reversed most of its profits from the past few weeks. This comes after a surge in the forecast of the first spot exchange sales fund of assets launched last week after multiple delays.
Meanwhile, XRP cuts 5% more than $2.85 today, while BNB has dropped more modestly that day by 3.9%, up over 11% in a week.
Liquidation, ETF, macros
GlassNode analysts said today they saw a long liquidation of over $100 million as Bitcoin caused a “clustered liquidation level” as prices fell below $115,000. Analyst highlighted concentrations of liquidation heatmap data posted by GlassNode between $113,000 and $114,000, adding that the range was “the most vulnerable in leverage.”
At the same time, Blockchain Analytics Firm analyst Keyrock said in a survey report Monday that the macro background was “carrying the 2019 echo.”
“This mix raises the risk of stags where debilitating growth collides with rising prices, narrowing down consumers and dragging them into the wider economy. In such a situation, they are leaning heavily towards risky assets, analysts wrote in today’s report.
Among the Spot Crypto ETFs, Bitcoin ETFs drew in fresh net inflows of over $886 million last week, but for each SOSOValue data, Spot Ethereum ETF added another $556 million over the same time frame.
Over the past 24 hours, more than $1.7 billion in leveraged positions have been settled in the market. Most of it marked the biggest long liquidation event of the year, with prices plummeting sharply.
The liquidation was concentrated on ETH, with over $503 million being wiped out, followed by BTC at $287.6 million, while other Altcoins saw a $260 million liquidation, Coinglas data shows.
On the macro front, after the US Federal Reserve cut 0.25% last week amid signs of a weakening of the labor market, analysts at Coinbase wrote in a market research article on Friday that current conditions “until they support the market’s risk-on stance, until additional nuances are created in the Fed’s advance guidance.”
In the meantime, in an interview with CNBC on Friday, Minneapolis Fed President Neil Kashkari added that minimal long-term inflation pressure from tariffs could allow multiple future interest rate cuts later this year.