Bitcoin (BTC) experienced a sharp decline on Wednesday, plummeting over 3% to reach the $64,000 mark. CoinGlass data revealed that long liquidations in the crypto market surged to $220.7 million over the past 24 hours. This significant drop paralleled broader market losses, with the Nasdaq 100 index falling 3.65%, marking its steepest decline since October 2022.
In addition to the long liquidations, $32 million in short positions were liquidated, with Ethereum accounting for $17.5 million and Bitcoin for $14.8 million. Ethereum’s price dropped nearly 8.6% over the past 24 hours, following the launch of spot Ethereum ETFs on Tuesday. ETH is now trading at $3,159.
Analysts have linked Bitcoin’s performance to tech stocks, pointing to factors such as a shifting political landscape in Washington, D.C., and optimistic bets on U.S. spot Ethereum exchange-traded funds.
Despite the unexpected short-term losses, some analysts remain optimistic about potential upward momentum in the coming months. “We maintain a positive Ethereum outlook,” stated QCP Capital, a Singapore-based crypto trading firm, in a note on Tuesday. “Bitcoin’s achievement of an all-time high two months post-ETF launch provides a compelling precedent. Anticipating sustained institutional interest, ETH’s price trajectory may gradually converge with its previous all-time high.”
The recent selloff in tech stocks was reportedly triggered by earnings reports from major companies, including Alphabet Inc., Google’s parent company, which revealed higher-than-expected capital expenses. Consequently, Alphabet’s stock fell over 5%, its worst performance since January. Tesla also experienced a significant drop of more than 12%, while Nvidia, a leading figure in artificial intelligence, saw its stock decline by 6.8%.
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