In the past 24 hours, the cryptocurrency market capitalization has fallen by 3.22%. Bitcoin [BTC] and ether [ETH] fell by 3.89% and 3.63% respectively. Bitcoin fell to a low of $66.2k, but did not reach the low of $65k on March 29.
These price movements were the result of President Donald Trump’s address to the nation. The S&P 500 has erased $550 billion from its market cap in less than half an hour, the Kobeissi Letter reports.
President Trump’s threats to attack Iran’s power plants and expectations of “two to three weeks” of further conflict sent oil prices soaring to $107.65 per barrel. Experts have warned that the initial price shock caused by rising oil prices was just the beginning.
It will take weeks and months before the consequences of this development are felt. This conflict and its aftermath could be what it takes to push Bitcoin toward its final cyclical capitulation.
The crypto market is facing increasing liquidations
Data from CoinGlass shows that there have been $349.84 million in liquidations in the market in the last 24 hours. Ethereum had the largest share of liquidations with $90.83 million, followed by Bitcoin in second place with $80.89 million in total.
It was mainly long-positioned traders who were affected by the president’s speech and the market-wide fear.
After March 28, financing rates fell into negative territory again. It indicated that the perpetuals contract was trading lower than the spot price, indicating heavily bearish sentiment in the short term.
The recent sell-off fell within Bitcoin’s long-term bearish trend. Zooming in on the price action over the past few weeks, the impact was not trend-changing. However, the crucial point remained the $65.6k level, as a four-hour trading session close below this level would shift the swing structure of the time frame bearishly.
This is the outcome BTC seemed to be heading towards. The $69,000 supply zone has firmly rejected the bulls, and the bearish internal structure could drive prices to the local low of $65,000, after which the price could move south of $63,300.
Final summary
- The crypto market saw another major liquidation event after President Trump’s announcement sent stock markets plummeting.
- Short-term expectations for Bitcoin and crypto remain bearish.