More than 62,000 crypto traders liquidated as Bitcoin, Ethereum Take Tumble

Bitcoin (BTC) fell overnight and the leading cryptocurrency fell to levels as low as $ 19,621, according to data from CoinMarketCap.

Last week was a bullish for cryptocurrencies, as most ended up in the green territory. BTC had also managed to stay above the $ 20,000 support after weeks of waffle above and below this price.

Bitcoin, however, has fallen 3.72% this morning over the past 24 hours and is trading close to its seven-day low of $ 19,341.23, indicating CoinMarketCap.

The market value of the largest cryptocurrency, Bitcoin, has crashed from as much as $ 1.27 trillion in November 2021 to below $ 377 billion today.

When it comes to Ethereum (ETH), the second largest cryptocurrency with a market value of 129 billion dollars, it has also fallen to around 1,068 dollars, a decrease of 6.7% over the last 24 hours.

This marks a fall of 78.14% from the highest record of $ 4,891.70.

In the middle of the bearish price action, more than 62,000 traders were liquidated in the crypto market, data from CoinGlass. Over $ 180 million has been liquidated in the same period.

Ethereum is leading nearly $ 62 million in liquidations in the last 24 hours, followed by $ 59.95 million in Bitcoin and $ 3.42 million in Solana over the same period.

Bitcoin, Ethereum faces a number of risks

The main drivers behind the bearish action are the declining crypto-trading volumes, the sales pressure from miners and high expectations of a new interest rate increase from the Federal Reserve.

The total trading volume of cryptocurrencies has fallen to just over $ 50 billion, a decrease of 86% from the highest level of almost $ 367.6 billion recorded on May 20, 2021, according to analysis data from CoinMarketCap.

The long-term bearish movement in the price of Bitcoin has also forced many miners to download their holdings to cover operating costs.

“With the loss of the $ 30,000 price level, miners and long-term owners (LTHs) have come under stress,” reads a recent report published by Glassnode. Long-term owners refer to Bitcoin holders who do not sell their holdings for months to years.

Currently, the long-term owners of Bitcoin face losses of up to 33%.

Finally, cryptocurrencies turned bearish after the 75 basis point increase announced by the US Federal Reserve last month. The Fed will meet again on July 26, with many waiting another 75-base hike.

This meeting can signal even more pain for all risk assets.

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