The global digital assets market woke up to see flat indexes as the biggest cryptos like Bitcoin (BTC) and Ethereum (ETH) seem to be in a consolidation position. However, the slow start for this week is followed by a bullish week driven by optimism about potential US interest rate cuts and a stock market rally.
Crypto longs bleed
The data shared by Coinglass shows that more than 60k traders were liquidated in the last 24 hours. The total liquidations involving both long and short bets stood at around $137 million. However, the biggest liquidation order happened on the crypto exchange OKX of ETH-USD-SWAP valued at $4 million.
As we dig, the data depicts that more than $100.45 million (73%) of the turns out to long positions. This suggests that bulls were hoping for Bitcoin to continue its rally ahead. Meanwhile, BTC has seen a marginal drop over the past 24 hours.
Bitcoin price is up by up by 30% in the last 90 days. It is trading at an average price of $67,186, at the press time. BTC is still down by over 8% from its all time high of $73,750 recorded on March 14, 2024. However, its 24 hour trading volume is up by 44% to stand at $23.1 billion.
What’s next to expect?
The market’s focus is now shifting to the Securities and Exchange Commission (SEC) decisions on ether exchange-traded funds (ETFs). VanEck’s ETF decision is expected on May 23, and the Ark/21 Shares ETF decision on May 24. Despite market expectations of a likely rejection, some analysts, like March Zheng of Bizantine Capital, see potential for positive developments.
Zheng suggests that the removal of staking propositions could reclassify ETH as a commodity, which might eventually lead to ETF approval supported by the Commodity Futures Trading Commission (CFTC).
Mike Novogratz of Galaxy Digital predicts a consolidation phase for Bitcoin between $55,000 and $75,000 over the next month, with potential rises towards the end of Q2. Bitfinex analysts foresee Bitcoin possibly reaching $150,000 over the next 12 months, driven by spot Bitcoin ETFs and post-halving effects.
The global digital assets market saw a marginal decline over the last 24 hours. The total market cap is $2.43 trillion. Its 24 hour trading volume is up by 30% to stand at $61 billion. The fear and Greed index stood neutral with 60 points.
