Bitcoin, Ethereum, Dogecoin Drop As Longs Worth $155M Face Liquidations: Analyst Says ‘Long Way To Go’ Before King Crypto Reaches Cyclical Top

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Major cryptocurrencies experienced a decline on Wednesday evening, with crypto longs facing liquidations totaling $155 million in the past 24 hours.CryptocurrencyGains +/-Price (Recorded 9:30 p.m. EST)Bitcoin BTC/USD -1.65%$51,283Ethereum ETH/USD -2.98%$2,914Dogecoin DOGE/USD -2.53%$0.083

What Happened: In the last 24 hours, data from CoinGlass shows that a total of 82,059 traders faced liquidation, resulting in a combined liquidation of $205.24 million. The most significant liquidation event occurred on Bitmex, involving an ADA-USD value of $1.58 million.

In a single day, Bitcoin longs worth $27 million faced liquidation, while Ethereum longs worth $32 million were also liquidated.

Top Gainer (24 Hour)CryptocurrencyGains +/-Price (Recorded 9:30 p.m. EDT)Jasmycoin JASMY/USD +35.48%$0.015SingularityNet AGIX/USD +19.46%$0.67Sia Coin SC/USD +13.16%$0.017

The global cryptocurrency market cap now stands at $1.94 trillion, showing a 2.03% decrease in the past 24 hours.

The Nasdaq Composite declined for the third consecutive session on Wednesday as traders anticipated Nvidias quarterly earnings report. The Dow Jones Industrial Average rose by 48.44 points, settling at 38,612.24, marking a 0.13% increase. Similarly, the S&P 500 experienced a 0.13% gain, concluding at 4,981.80. In contrast, the tech-heavy Nasdaq Composite retreated by 0.32%, closing at 15,580.87.

The Federal Reserves January meeting minutes, released on Wednesday, revealed that despite the recent stronger economic data, central bankers are not inclined to reduce interest rates. The officials opted to maintain the key overnight borrowing rate at its current level and signaled that no rate cuts would take place until the Federal Open Market Committee is more assured of a slowdown in inflation.

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Analyst Notes: Cryptocurrency analyst Michael Van de Poppe anticipates a swift correction towards the range of $48-49K for Bitcoin, followed by an upward movement towards $54-$58K.

"This correction most likely rotates money from Bitcoin to altcoins too."

According to Ali Martinezs analysis, there is currently a mixed behavior among crypto whales, with some buying and others selling to capitalize on recent price movements. However, when examining the largest whales, those holding between 1,000 and 100,000 BTC, a clear trend of accumulation is evident.Loading… Loading…

"This pattern is typical of bull markets, indicating a positive outlook among these major holders. They [Whales] began purchasing $BTC around $29,000 and accelerated their buying once the price surpassed $46,000. This collective action suggests confidence in the markets potential for further gains despite minor short-term corrections along the way."

The co-founder and chief executive of analytics platform CryptoQuant, Ki Young Ju, suggests that there is still a long way to go before BTC reaches its cyclical peak. According to Ju, 63% of Bitcoins realized cap has remained inactive for over six months. Realized cap, an on-chain metric used to estimate the top crypto asset's market capitalization, eliminates long-lost and unclaimed coins in the calculation, offering a more accurate assessment.

Comparing historical data, previous cycle tops in 2021, 2018, and 2014 recorded 15%, 5%, and 5%, respectively, using the same metric, as stated by the CEO.

Photo by CMP_NZ on Shutterstock

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