Market observers had expected a major rebound in the digital currency ecosystem, however, the price of Bitcoin (BTC) is leading a bearish close to the week. In line with this derailment, the combined crypto market has seen over $442 million in total liquidations.
Bitcoin Price, Altcoin, and Liquidation Shock
Bitcoin opened trading with bullish optimism as it almost retested the $72,000 resistance level. At its peak over the past 24 hours, Bitcoin price jumped to $71,918.97, a gain it is currently giving up.
The concerns in the risk market stem from the uncertainties around GameStop (GME). After soaring by more than 30% intra-day, the stock fell over 40% following a controversial livestream from Roaring Kitty, the main figure behind its unsustainable rally.
With the GameStop plunge, all risk assets are now undergoing an intense selloff with Bitcoin price down by 2.07% in 24 hours to $69,170.67. Top altcoins including Ethereum (ETH), Binance Coin (BNB), Solana (SOL), and Dogecoin (DOGE) have also dropped by 3.44%, 2.81%, 4.49%, and 7.44%.
Per actual price reading, Ethereum is now priced at $3,683.56 while Solana and Dogecoin are pegged at $682.29, $162.62, and $0.1486.
The unexpected price crash effectively triggered a $414.42 million liquidation from the combined crypto market per Coinglass data. Bitcoin took a hit with more than $74 million in liquidation at the time of writing. Ethereum said $59.36 was shredded off its market value while assets like Solana and PEPE lost $21.96 million and $8.92 million.
What Comes Next for the Market
The plunge in Bitcoin price and the massive market liquidation is not unusual in the market. Moving forward, the natural order will likely play out with the bears exhausting their selling advantage in no time.
With the impact of spot Bitcoin ETF products resounding in the market, it is only a matter of time before the tides will change in a bullish direction. This will even be complemented by spot Ethereum ETF trading in the coming weeks.
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