Worst Day in 2024: Bitcoin (BTC) Plummets by $10,000, Ethereum (ETH) in Freefall, Shiba Inu (SHIB) Faces Disaster: Add Zero?

In the past 24 hours, the cryptocurrency market has experienced significant liquidations, leading to a massive sell-off that has driven Bitcoin’s price below $50,000 and under the crucial $60,000 threshold. This dramatic decline, amounting to a staggering $10,000 decrease in value, has shaken the confidence of many traders and investors in Bitcoin.

The primary catalyst for this sell-off was a massive $1 billion liquidation across the cryptocurrency market, which triggered a cascade effect, driving Bitcoin prices down sharply. Recent trading data reveals that strong selling pressure has overwhelmed the market, evident from a notable spike in trading volume. Currently, Bitcoin is in a precarious situation, testing the 100 EMA support level following this abrupt price drop.

Despite the turmoil, prominent traders on one of the major exchanges show resilience, with nearly 70% of them holding long positions on Bitcoin, betting on a potential future rebound. Nevertheless, the sharp price fall and significant liquidation activity indicate a prevailing sense of pessimism among market participants.

This situation underscores the ongoing conflict between traditional asset stores like gold and Bitcoin, with the broader market conditions heavily influencing Bitcoin’s downturn. A panicked market environment has been exacerbated by notable stock sell-offs, including Warren Buffett’s divestment of several stocks while maintaining a cash reserve of $277 billion. The NASDAQ’s nearly 6.5% decline and the largest drop in Japanese stocks in over eight years have created a perfect storm for Bitcoin.

In a similar vein, Ethereum is experiencing a steep decline, mirroring Bitcoin’s downturn but facing its own distinct challenges. Over the last day, Ethereum’s price has dropped significantly, breaching critical support levels, which has raised concerns among investors. Currently trading at around $2,356, ETH’s decline has been primarily driven by institutional selling pressure in the market.

The recent over $1 billion liquidation across the cryptocurrency space has further intensified Ethereum’s downward trend, triggering a chain reaction of sell orders that increased selling momentum. Like Bitcoin, Ethereum is now testing important support levels at the 200 EMA, and any breach of this level could lead to further losses.

Institutional selling has played a significant role in the current market landscape, with substantial outflows from exchanges indicating major holders are aggressively offloading their positions. The overall market conditions, fueled by concerns stemming from high-profile stock sell-offs and significant market declines, have contributed to the negative momentum surrounding Ethereum.

Additionally, Shiba Inu has encountered a sharp price drop, falling from approximately $0.00002 to $0.000012. This sudden decrease has triggered investor apprehension, signaling potential issues for the cryptocurrency. The ability of Shiba Inu to recover is now in doubt, especially after breaking through critical support levels, indicating a downward trend with a 65% price decline since its peak earlier this year. With its price perilously close to a crucial support area of $0.00001, any further drop could trigger additional losses and potentially add another zero to its value, raising bearish sentiments among investors.

On-chain metrics reflect a bleak picture, with around 1.5 trillion transacted in the last 24 hours among large wallets. This figure does not surpass the usual transaction volume, suggesting a lack of significant buying or selling activity, further underscoring the challenges present in the current cryptocurrency market.