Recent data from Coinglass highlights significant liquidations in the cryptocurrency market, exceeding $1 billion in just 24 hours.
Reasons Behind Bitcoin's Decline
One possible reason for this trend is attributed to the Producer Price Index (PPI). Expectations regarding the closing of the CME gap had persisted since Sunday evening, although a drop to around $117,000 was predicted. Analyst Quinten Francois views today’s decrease as merely closing the CME gap and expects upward momentum to resume, sharing a graph to support his forecast.
Altcoins and THETA's Prospects
The analysis of altcoins indicates increased optimism despite the uncertain impact of PPI data. Analyst DaanCrypto noted that BTC Dominance is in a downtrend, aligning with the post-election rally scale. Regarding Theta Coin, the author anticipates a rise due to a deal with Ligue 1 Football Club Olympique Marseille, although the price has remained stable.
Analytical Conclusions
Liquidations exceeding $1 billion since the release of the U.S. PPI data suggest a long-biased liquidation tendency. While ETH positions experienced significant liquidations, the $4,500 level remains stable. The market's future movements will be crucially dependent on economic indicators and the reactions of market participants.
In summary, the cryptocurrency market faces serious challenges related to the liquidation of large positions. Future movements will hinge on economic data and market participant reactions.
