Leading cryptocurrencies descended further on Wednesday as whale sell-offs and geopolitical uncertainty dampened risk appetite.
Crypto Long Liquidations Surge
Cryptocurrency-related stocks bled, with Strategy and Bitmine Immersion Technologies Inc. (NYSE:BMNR) closing down 7.01% and 5.95%, respectively.
Liquidations continued to surge, with over a billion wiped out in long positions over the last 24 hours, according to Coinglass data. Bitcoin’s open interest collapsed 8.56% over the last 24 hours.
“Extreme Fear” sentiment prevailed in the market, according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.29 trillion, following a decline of 5.58% over the last 24 hours.
Stocks Take A U-Turn
Stocks snapped their record-breaking streak on Wednesday. The Dow Jones Industrial Average retreated 620.72 points, or 1.21%, to end at 50,687.07. The S&P 500 pulled back 0.74% to end at 7,553.68, while the tech-heavy Nasdaq Composite fell 0.89% to close at 26,853.98.
Hostilities flared in the Middle East after Iranian drones damaged a passenger terminal at Kuwait’s main airport, according to a report by the Associated Press.
Meanwhile, the House voted to restrict President Donald Trump’s ability to continue military operations against Iran without congressional authorization, with four Republicans joining the Democrats in the vote.
Bears Dominating BTC’s Profile?
Blockchain analytics firm CryptoQuant highlighted a bearish shift in Bitcoin’s risk profile visible in futures liquidation flows.
“Since the risk profile shifted, liquidation dominance has increasingly moved against long positions,” CryptoQuant stated. “What matters is that aggressive counter-trend longs are no longer being rewarded when liquidation dominance moves with the trend.”
Widely followed cryptocurrency analyst and trader Ali Martinez identified $1,825 as Ethereum’s “critical floor” that could well decide its “next big move.”
“If $1,825 holds, expect a solid bounce back up toward $2,070 or even $2,360. If we close below $1,825, this support fails and the price will likely head lower toward $1,500,” Martinez predicted.
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