Crypto Market Bleeds As Prices Drop: Are Investors Safe? (July 2024)

• Over $600M has been wiped out of the crypto market in 24 hours.
• The liquidations come as Bitcoin (BTC) plunges below $55K levels.
• The entire crypto market is red today, with the total market cap down by nearly 9%.

On July 5, 2024, the total liquidations across the crypto market have surpassed $600 million in the last 24 hours amid a drastic price drop that has pushed Bitcoin to a four-month low. 

Data from CoinGlass shows that $590M in long positions has been wiped out. Bitcoin long traders have been among the worst hit, with $185M being liquidated. That’s a big reason for investors to worry.

Quick Fact

• Event: Bitcoin (BTC) plunges below $55K levels.
• Date: July 5, 2024
• Impact: $590M in long positions has been wiped out of the crypto market in 24 hours.
• Reaction: Global cryptocurrency market capitalization has dropped by 9%, and it now risks falling below $2 trillion.

Crypto Market Tumbles 

In the last 24 hours, the global cryptocurrency market capitalization has dropped by 9%, and it now risks falling below $2 trillion. All top-ten largest cryptos by market cap are trading in the red as selling pressure increases significantly.

The ongoing bloodbath across the cryptocurrency market coincides with fears of the defunct Mt.Gox exchange starting distributions. The exchange recently moved $2.7 billion from a cold wallet to reimburse creditors. 

Bitcoin is down by over 7% in 24 hours to trade at $54,234 as of 02:45 EST. The last time BTC traded at the current price was in February, as seen on TradingView. 

The king of cryptos also has a Relative Strength Index (RSI) level of 19, showing it is in the oversold region. The drastic drop in RSI levels proves sellers are behind in the recent price action.

A similar price movement can also be seen in Ether (ETH), which has dropped below $3,000. In the last 24 hours, ETH has fallen by 10% to trade at $2,873 at 02:52 a.m. EST. The expected approval of a spot ETH ETF in the coming days has done little to buoy Ether prices. 

BNB and Solana (SOL) have also been hit, with the price dropping by 11% and 6% in the last 24 hours, respectively. XRP and Toncoin (TON) are also down by 11% each. 

Meme Coins Worst-Hit By Market Meltdown 

As the crypto market reels, meme coins have taken the worst beating, with the total meme coin market dropping by 18%. 

Dogecoin (DOGE) is among the worst-affected after dropping by 15%. Shiba Inu (SHIB) and PEPE have also plunged by 15% and 16%, respectively. DogWifHat (WIF) and BONK have also lost 11% and 12% of their value, respectively. 

As the market continues to bleed and lose value, Santiment notes a “historic level of FUD.” Many traders lean towards selling rather than buying, affecting the price performance. Moreover, the crypto market has recorded the highest ratio of negative comments so far in 2024. 

The decline in crypto prices might only be the beginning, with the crypto fear and greed index at 29. This shows a state of fear and that a bearish sentiment is now in play. 

On the early hours of Friday, July 5, 2024, the largest crypto by market cap, Bitcoin (BTC), plunges below $55K levels. This drop triggered an unexpected liquidation in the crypto market as $590M in long positions was wiped out in 24 hours. Subsequently, the global crypto market cap has dropped by 9%, and it now risks falling below $2 trillion.

Impact on Traders

Over 243,000 traders were liquidated in a single day, with Ethereum and XRP traders experiencing some of the heaviest losses during the July downturn.

While the liquidation event forced overly bullish positions out of the market, some analysts viewed it as a shakeout rather than the beginning of a broader correction.

An earlier report by 10x Research said that as Bitcoin’s price has broken the $60,000 support, a further price drop could be coming. The report stated that the next decline will see BTC clinch the $50,000 level. 

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