Crypto market crash amid $300 million liquidation wave and OI crash

As the broader correction unfolded, Bitcoin and altcoins saw a decline. As buyers failed to hold critical levels, the crypto market is witnessing liquidations on the long side and a massive shift in underlying sentiment towards bearish. Let's take a closer look at the crypto market's on-chain data to find the bottom of the crash.

Liquidations are increasing

As for liquidations, the crypto market saw a massive surge alongside liquidations. The overall crypto market saw a surge of $281 million alongside liquidations, with $32 million being on the short side.

With over $300 million worth of positions liquidated, volatility has spiked amid the crypto market crash. In the last 24 hours, Ethereum has seen $103 million worth of liquidations, Bitcoin $96.49 million, Solana $12.11 million, and other altcoins $37.58 million.

The Open Interest Crash

Since March 2024, Bitcoin's highly volatile sideways movement within a huge price range has resulted in equally volatile open interest. Currently, the crypto market crash is accompanied by a sharp drop in Bitcoin open interest from $34.72 billion to $30.79 billion in just three days.

Matrixport is waiting for the siren sell signal

A recent tweet from Matrixport states that there is no major news to trigger the ongoing crash, so the crash is in line with long liquidations in a market with low liquidity.

Currently, BTC is holding the $59,000 support level and bulls may not have to worry as long as they hold this level.

Stablecoin market capitalization reaches $166 billion

With the market becoming increasingly volatile, the stablecoin market cap hits a record high of $166 billion. The rise in the stablecoin market cap is often a signal of an impending rise in Bitcoin and altcoin prices. Therefore, based on the historical trend of the stablecoin market cap, the chances of recovery from the sudden crash in the crypto market are high.

Diploma

To sum up, the recent crypto market crash with $300 million in liquidations and a plunge in open interest is adding to the bearish sentiment. However, Bitcoin is holding firmly at the $59,000 support level, offering a glimmer of hope to the bulls.

Furthermore, the rise in stablecoin market capitalization to $166 billion indicates potential recovery opportunities, as such increases historically often precede upside moves in crypto prices.

Also read our Bitcoin price prediction 2024-2030