Ethereum

Long

2024

Bitcoin

<p>Volatility has struck the cryptocurrency market once again, causing a sharp drop in major assets, including Bitcoin and Ethereum. This new wave of liquidations has brought about a series of consequences well-known to investors. At the same time, the market shows signs of increasing fragility, highlighting the inherent risks of long positions.</p> 
<h2 id="h-bitcoin-an-expensive-fall">Bitcoin: An Expensive Fall</h2> 
<p>Bitcoin, often considered <a href="https://www.cointribune.com/bitcoin-le-nouvel-or-numerique-une-opportunite-qui-seduit-les-investisseurs/" target="_blank" rel="noreferrer noopener">the «</a> <a href="https://www.cointribune.com/bitcoin-le-nouvel-or-numerique-une-opportunite-qui-seduit-les-investisseurs/" target="_blank" rel="noreferrer noopener">digital gold »</a>, saw <strong>its long positions liquidated to the tune of 90 million dollars</strong>, a record level since August 5th. This <a href="https://x.com/cryptoquant_com/status/1828707891982840042" target="_blank" rel="noreferrer noopener">bloodbath</a> for investors contributed to <strong>a sharp decline in Open Interest</strong>, which dropped by 2.2 billion dollars.&nbsp;</p>
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     <p lang="en" dir="ltr">Traders were speculating on higher prices, which created a fragile environment.<br><br>Open Interest rose from $13.5B to $17.9B (31%) since August 5th, and Funding Rates remained positive, indicating a premium on perpetual contracts.<br><br>This situation often leads to instability in… <a href="https://t.co/G6c9fO6bbo">pic.twitter.com/G6c9fO6bbo</a></p>— CryptoQuant.com (@cryptoquant_com) <a href="https://twitter.com/cryptoquant_com/status/1828707891982840042?ref_src=twsrc%5Etfw">August 28, 2024</a>
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  Details on the wave of long liquidations on Bitcoin and Ethereum – Source: CryptoQuant (X)
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<p>This shows how much the market has lost its recent momentum.&nbsp;</p> 
<p>« <em>Speculation on higher prices has created a fragile environment</em> », as observed by @jjcmoreno.&nbsp;</p> 
<p>In reality, Bitcoin was not the only one to suffer, but its <strong>drop of more than 10% in just two days</strong> has revived fears of a new downward spiral.</p>  
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<p>Here are the key figures of this debacle:</p> 
<ul> 
 <li>Bitcoin plunged by 10.8% in two days;</li> 
 <li>Open Interest fell from 13.5 to 17.9 billion dollars;</li> 
 <li>Long liquidations reached a peak of 90 million dollars.</li> 
</ul> 
<h2 id="h-a-volatility-destabilizing-the-entire-crypto-market">A Volatility Destabilizing the Entire Crypto Market</h2> 
<p>Beyond Bitcoin, the entire crypto market is facing worrying instability. Ethereum, for example, was also severely hit, with <strong>long liquidations reaching 55 million dollars</strong>.&nbsp;</p> 
<p>This wave of liquidations is <strong>not a mere isolated incident</strong>, but a symptom of a market struggling to digest the sudden influx on trading platforms. The already fragile positions of traders started to give way, fueling a vicious cycle where volatility begets more volatility.&nbsp;</p> 
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<p>Investors, burned by these brutal movements, are now on high alert, watching for any sign of calm in this tense climate.</p> 
<p>This <a href="https://www.cointribune.com/en/?p=722599" target="_blank" rel="noreferrer noopener">sharp drop in the crypto market</a> results from massive liquidations and exacerbated volatility, reminding us of the caution necessary in the face of the chronic instability of cryptocurrencies.</p>
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Crypto : $145M In Bitcoin And Ethereum Liquidations – The Market Trembles !

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