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Monday, July 4, 2022

Bitcoin Price Takes A Massive Hit

Although the price of Bitcoin and a few other altcoins took a massive hit last week, the overall crypto market was pretty calm. But, if one were to look at the winners and losers of the last week, one would clearly see that traders suffered through some major heat as the market capitalization of the entire crypto market went down by 12.7% with BTC falling to $41,000.

This steep move downside knocked the figure from a sum of $2.37 trillion to a sum of $1.92 trillion on the 3rd of December, with a total sum of $2 billion long future contracts getting liquidated. 

Bitcoin and Ethereum Going Through A Drop In Prices

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The price of Bitcoin then went on to retrace itself back by 14.6% over the last week, which effectively underperformed the majority of the altcoin market. A major part of this unusual movement could be explained by the performance that was visible in decentralized applications which ended up holding better than most of the crypto market. According to data presented, Ethereum traded down by 6%, with BNB losing 7.3%, and Solana dropping by 7.8%. 

The correction taking place last week had the overall impact of a major drop in the open interest of total futures- which went down from 28% to $16.7 billion. Nonetheless, the move was quite expected with the retraction of the total market cap and around $3.9 billion worth of liquidations taking place. More importantly, the Bitcoin and Ethereum funding rates quickly recovered from the price crash on the 3rd of December. 

While this might not sound completely encouraging, one has to consider the fact that Bitcoin did end up going through considerable losses this week. And despite that, the overall market structure of the crypto industry held up quite nicely. 

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