Crypto market liquidations have started to subside after steeply rising in the past few weeks. At the peak of the market crash, liquidations soared over a billion dollars but have slowly begun to return to lowerlevels, around $150 million today.
Ethereum Closes the Week in Green
For the first time in over a year, Ethereum has closed the week in green. The monthly color continues to be red, but it has finally ended. It’s been around for three months now, and the weekly red streak has also ended.
The green candle shown last week is a positive sign for bitcoin. It suggests that the market is still unsure of its direction and is also often the case when long streaks of gains come to an end.
For the first time in over a decade, ETH closed a weekly candle. On Binance, it ended last week at $1129.53, having peaked at around $1280 and then dropped to a low of $1043.65.
It’s worth noting that since the beginning of June, the cryptocurrency has managed to bounce back from its June 18 crash, which caused it to fall to $880. However, it’s still around 75% from its all-time high.
Bitcoin Options Point To Positive Signs
Despite the volatility in the cryptocurrency market, options traders see some positive signs. The sudden controversy and the lack of transparency surrounding the sector have caused some investors to rethink their positions.
Chris Bae, the chief executive of EDG, is a former trader who is now looking into the options market. He used to work at Goldman Sachs and UBS. He is also interested in the open interest in the exchange-traded options market.
In an interview, Bae noted that although liquidity has decreased, it does not imply that the market has become more liquid. He said that the various data points collected suggest that the market is still functioning as normal. He also noted that the bid-ask spreads are reasonable.
The environment has been strained by various factors, such as the emergence of multiple hacks and the collapse of several significant crypto hedge funds.
Due to the recent volatility in the cryptocurrency market, several lenders have experienced liquidity issues. These include Celsius Network, Three Arrows Capital, and Babel Finance.
Currently, Bitcoin is trading at around $22,000 and is expected to test the support at approximately $28,000. According to experts at Credit Suisse, the US economy will likely contract by zero percent during the fourth quarter. However, this doesn’t officially mark a recession.
SHIB Flips DAI to Become the 12th Top Crypto
Shiba Inu, a popular dog-themed token, has seen its value surge over the past week. According to market analysis firm, CoinMarketCap, they predict that soon this surging price could push the token into the top 10.
The price of Shiba Inu has risen by over 43% in the past week. It then pushed its market cap to more than $6 billion. It needs to increase its market cap by around 4 billion dollars to overtake Dogecoin to become the 10th most valuable cryptocurrency.
The price of Shiba Inu has been rising due to an important transaction on June 22. One of the leading Ethereum whales known as BlueWhale0073 purchased over 163,000 Shiba Inu (SHIB) tokens worth over $1.575 million.
According to a tweet by WhaleStats, the second-biggest dog-themed digital currency has become the most frequently traded token among the 500 biggest cryptocurrencies. Over the past 24 hours, the whales have exchanged hands with $638,735,216 ($638.73M) in Shiba Inu.
Source: https://crypto.news/crypto-market-liquidations-ethereum-bitcoin-shib/