The global crypto market cap fell more than 6% to $1.63 trillion today. Top cryptocurrencies Bitcoin, Ethereum, Solana, XRP, Cardano and others plunged over 6% in just an hour. BTC price fell 7% in the last 24 hours to fall below the $41,000 mark, erasing previous gains. On the other hand, Ethereum (ETH) price fell by 8% and hit a low of $2,113.
The crypto market saw over $600 million liquidated in the last 24 hours, with $500 liquidated in just one hour. Coinglass data suggests that over $561 million worth of long positions were liquidated today, January 3rd. More than 176,000 Traders have been liquidated in the last 24 hours, with the largest single liquidation order Huobis BTCUSDT Value $14.26 million.
CME Bitcoin Futures OI slips from record high
CME Bitcoin futures open interest (OI) hit a record high on Wednesday amid spot hype surrounding Bitcoin ETF approvals and FOMO following the recent BTC price rally.
Coinglass reported on January 3 that open interest (OI) for Bitcoin futures on the CME reached a new high of $5.69 billion. The last time open interest in CME Bitcoin futures reached an all-time high was in October 2021, when BTC price traded above $60,000. Over the next two months, BTC price fell below $40,000.
Furthermore, the Total Bitcoin Futures OI across all exchanges fell 9% to $18.17 billion $20.23 billion. In the last 4 hours, BTC OI is down 6% on CME and 16% on Binance. Additionally, BTC options data suggests that put positions have gradually increased over the past 24 hours, indicating a sell-off by options traders.
Meanwhile, Matrixport rocked the crypto community with a bold Bitcoin price prediction and the SEC's decision on the Bitcoin Spot ETF. According to the latest report, the US Securities and Exchange Commission (SEC) is expected to reject all Bitcoin spot ETFs in January, which could potentially lead to a sharp drop in Bitcoin value to as much as $36,000.
Macro makes an impact
The US Dollar Index (DXY) is up 0.29% today to above 102.50. It has continued to rise since last week after hitting a low of 100.99 last week.
Additionally, U.S. Treasury yields rose on Wednesday as investors await new economic data out this week that could provide insight. The 10-year Treasury yield rose to 3.973% and has been recovering in recent days.
ISM Manufacturing PMI, JOLTS jobs and FOMC meeting minutes are due today, while the jobs reports and services PMIs are expected on Friday.
These macro factors further complicate Bitcoin’s continued upward momentum.
Also Read: Bitcoin Bull Cathie Wood's Ark Invest Extends Coinbase and Robinhood's Selloff
✓ Share:
Varinder has 10 years of experience in the Fintech sector, including over 5 years in blockchain, crypto and Web3 developments. A technology enthusiast and analytical thinker, he has shared his knowledge of breakthrough technologies in over 5,000 news stories, articles and articles. With CoinGape Media, Varinder believes in the enormous potential of these innovative future technologies. He is currently reporting on the latest updates and developments in the crypto industry.
The content presented may contain the personal opinions of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.