Crypto Market Plunges: $300M Liquidation Surge and OI Crash – CoinAero

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The post Crypto Market Crash Amid $300M Liquidation Surge and OI Crash appeared first on Coinpedia Fintech News

Amid the broader correction, Bitcoin and altcoins have registered a downfall. With buyers failing to hold onto critical levels, the crypto market is witnessing long-side liquidations and a massive shift in underlying sentiments toward bearishness.  Let’s take a closer look at the on-chain data of the crypto market to find the bottom of the crash.

Liquidations On The Rise

Coming to the liquidations, the crypto market witnessed a massive surge alongside liquidations. The total crypto market witnessed a surge of $281 million alongside liquidations, with $32 million on the short side.

Total Liquidations Chart

Coinglass

Hence, with more than $300 million worth of positions being liquidated, the volatility has surged amid the crypto market crash. Over the past 24 hours, Ethereum has registered $103 million liquidations, Bitcoin $96.49 million, Solana $12.11 million, and $37.58 million in other altcoins. 

Liquidations

The Open Interest Crash 

Open Interest Crash

Coinglass

Since March 2024, the highly volatile sideways movement within a huge price range in Bitcoin resulted in an equally volatile Open Interest. At present, the crypto market crash comes with a sharp fall in the Bitcoin open interest from $34.72B to $30.79B in just three days. 

Matrixport Waits To Siren Sell Signal

In a recent tweet from Matrixport, a report suggests that the ongoing crash lacks any significant news to trigger the motion. Hence, the downfall comes with the long-liquidations in a low liquidity market. 

As of now, BTC sustains the $59K support level, and the bulls might not have to worry as long as they hold this level. 

Stablecoins Market Cap Hits $166B

With the increasingly volatile market, the Stablecoins market cap hits a record high of $166 billion. The increase in the stablecoins market cap is often a signal of an upcoming surge in Bitcoin and altcoin prices. Hence, the chances of a recovery from the sudden crypto market crash are high, based on the historical trend of stablecoins market cap. 

Stablecoins Market Cap

Cryptoquant 

Conclusion

In conclusion, the recent crypto market crash, with $300 million in liquidations and a crash in open interest, increases the bearish sentiments. However, Bitcoin holds tight to the $59K support level, providing a glimmer of hope for bulls. 

Additionally, the surge in the stablecoins market cap to $166 billion suggests potential recovery opportunities, as historically, such increases often precede upward movements in crypto prices.  



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