While Crypto Sale Continues, Prices Stabilize After Over $1.2B Liquidated In Calls Last Week
At one point last week, BTC dropped to a 2-year low after falling to around $26,700 for the first time since December 2022. Over the past 24 hours, BTC has recovered and currently trades around $29,900.
Historically, the market cap of crypto tokens is heavily attached to the coin’s underlying price with both moving in conjunction with one another. The old theory proved true this week as BTC’s market capitalization fell to just over half a billion as crypto markets reeled from heavy losses. BTC has now lost more than $400 billion in market cap from its 2022 high of $910 billion back in March, following market shock from the LUNA/UST scandal, but many see this as an opportunity to improve the crypto ecosystem and pad their wallets at a discount.
Sentiment remains mixed, however, as some market analysts are calling for BTC to go as low as $24,700, pointing out that the bear market cycle patterns are still present. More than 305,000 traders have lost their long positions during the market crash.
According to CoinGlass, liquidation calls amounted to more than $1.2 billion last Thursday, with BTC, ETH, and LUNA accounting for the top three liquidated tokens.
Additionally, even the USDT, the largest stablecoin in the world issued by Tether, de-pegged in the early hours of Thursday with a slight deviation from its $1.00 mark to trade hands at $0.98. Unlike algorithmic stablecoins, USDT is supported by a fiat reserve that locks in $1 for every USDT in circulation, yet it too has been hit by the crypto crash.