Ethereum, Altcoins Extend Losses Against Bitcoin as BTC Tests USD 35K Zone
On Saturday, the crypto market dropped further, with bitcoin (BTC) reaching price levels last seen in July 2021, while ethereum (ETH) extended its losses against BTC.
At 09:12 UTC, BTC trades at around USD 35,700, recovering from almost USD 35,250, reached earlier today. The price is now down 9% in a day and 27% in a month, trimming its annual gains to less than 16%. Meanwhile, ETH is down 14%, trading at USD 2,482. The price is also down 39% in a month, but still up 121% in a year.
Other coins from the top 10 club are down 13%-27% in a day. Liquidations in the crypto derivatives market reached USD 1bn as almost USD 306,400 trading positions were liquidated in the past 24 hours, per Coinglass data.
As reported, the market dropped following a selloff led by technology stocks in the US this week.
"Bitcoin’s continued selloff is driving speculators out the market. However, with leverage quick to build up around this asset, the market could be setting itself up for a short squeeze and relief rally,” Ben Caselin, Head of Research and Strategy at crypto exchange AAX, told Cryptonews.com on Friday.
He added that the selloff is likely “not too concerning” for long-term holders, although it could turn away some newcomers to the space. In particular, this is the case for “those who are trading meme coins and other hype-based tokens,” the analyst said.
While there have been much larger percentage drawdowns for both bitcoin and the aggregate market, this marks the second-largest ever decline in dollar terms for both, Bloomberg reported, citing Bespoke Investment Group. "It gives an idea of the scale of value destruction that percentage declines can mask," per the analysts at the group.
"Bitcoin is being battered by a wave of risk-off
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