The crypto market is witnessing a major decline today, extending the decline that occurred in tandem with Bitcoin's price correction. A sudden massive sell-off during Asian trading hours fueled concerns about a potential decline below $58,000.
Crypto markets have been volatile ahead of Nvidia's earnings announcement, with US stock market index futures almost unchanged. A strong Q2 earnings report from the company will drive higher AI stock and token prices.
The total crypto market fell to $2.06 trillion today due to market trends, technical chart weakness, and macroeconomic factors. Despite a slight recovery in US trading hours, uncertainty among investors remains.
According to CoinGlass data, nearly 87,000 trader positions were liquidated in the last 24 hours, with total liquidations reaching $320 million. Almost $260 million in long positions and $60 million in short positions.
On the other hand, Binance faced criticism after reports claimed the exchange seized crypto assets. Crypto prices immediately fell after the centralized exchange reportedly seized users' crypto assets and blocked accounts on government orders.
However, Binance co-founder Yi He denied the allegations and revealed that only user accounts linked to illegal funds were blocked to comply with anti-money laundering laws. Crypto markets recovered slightly after Binance denied seizure of crypto assets. The market is now showing signs of recovery, with potential upside in the coming weeks.
Matrixport reported that Bitcoin fell sharply due to liquidation of long positions which may be due to lack of liquidity. Traders who took long positions after Federal Reserve Chairman Jerome Powell signaled a rate cut have liquidated. The crypto market research firm pointed out that concerns will increase if Bitcoin fails to recover above $59,000.
The price of BTC fell below the uptrend line, which triggered a massive sell-off across the market. A key support level is at $58,000. If the price falls below this level, it may fall to the next psychological level at $55,000.
Bitcoin needs to recover above $63,000 for confirmation of upcoming bullish momentum.