In the volatile world of cryptocurrencies, recent data indicates that liquidations have surged past $500 million within just 24 hours, primarily driven by major players like Bitcoin and Ethereum. This trend highlights the ongoing struggle in the market, prompting a panic sell-off from retail investors and casting a shadow over the broader cryptocurrency landscape.
- CryptoQuant data revealed a significant panic sell from smaller Bitcoin holders, resulting in a loss.
- XRP outperformed major tokens ahead of multiple ETF launches this week.
- Market sentiment on Stocktwits has shifted into ‘bearish’ territory for both Bitcoin and Ethereum.
As Bitcoin’s price lingered around $95,600 early Monday, the effects of consistent retail selling became evident. Continuous outflows from spot ETFs have further depressed the overall cryptocurrency market. Within the last 24 hours, the total market capitalization slipped about 1%, bringing it down to approximately $3.3 trillion. During this turbulent period, roughly $530 million worth of positions were liquidated; $398 million stemming from long positions and $131 million from shorts. Notably, Bitcoin led the way with $188 million in liquidations, supplemented by Ethereum, which accounted for $160 million, followed by Solana at $21 million and XRP at $13 million.
What Drove Bitcoin’s Price Lower?
Bitcoin’s value experienced a 0.7% decline over the last day. Data from Stocktwits indicates a shift in retail sentiment to ‘bearish’ territory, while engagement levels soared to ‘high’. Over the weekend, Bitcoin dipped to an intraday low of $92,971.17, marking its weakest point since late April. The cryptocurrency’s struggle was largely attributed to selling pressure, particularly among newer participants. CryptoQuant data highlighted a dramatic net offloading of 148,241 BTC by holders with less than 1 million BTC in a so-called “panic sell.” This selling spree occurred around $96,853, significantly below their average buying price of approximately $102,000 to $107,000.
CryptoQuant elaborated on this behavior, suggesting that despite long-term holders adjusting their positions quietly, short-term holders’ panic was a more significant factor in Bitcoin’s drastic price fall from the highs of $126,000. As new investors sell off their assets in fear, the market continues to grapple with its direction.
XRP Edges Higher As ETF Demand Builds
While Bitcoin and other major cryptocurrencies faced losses, XRP gained a slight edge, rising 0.1% over the last 24 hours. The token’s retail sentiment trended ‘bullish,’ in stark contrast to the bearish moods surrounding Bitcoin and Ethereum. Chatter related to XRP remained at ‘high’ levels, largely fueled by speculation regarding upcoming ETFs. Analysts like Ali Charts noted that XRP’s key support sits at $2.15, and a hold above this level could set the stage for a potential rise to between $2.40 and $2.70.
The imminent launches of several XRP ETFs have also contributed to positive sentiment. Franklin Templeton is set to debut its XRP ETF (EZRP) on Tuesday, and Bitwise will follow on Thursday. Moreover, 21Shares plans to launch its own XRP ETF later this month, depending on listing arrangements. Despite a generally weak market, Canary Capital’s spot XRP ETF (XRPC), which commenced trading recently, has already garnered $243 million in investment.
Meanwhile, the landscape for other cryptocurrencies remained bleak, with Cardano witnessing a 2.4% downturn and retail sentiment shifting decidedly ‘bearish’. Other major cryptocurrencies like Tron, Dogecoin, and Binance Coin also registered losses ranging from 1.4% to 2.4%. Ethereum’s price followed suit, declining by 1.1% as its retail sentiment mirrored the bearish trend.
As the cryptocurrency market continues to evolve, the dynamics of liquidation and sentiment offer a glimpse into the challenges that investors face. With the backdrop of ETF launches and shifts in market sentiment, traders are left to navigate the complexities of this unpredictable environment.
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