Crypto Winter: $440M Lost in Altcoin Liquidations

As the crypto market drops for the second consecutive day, investors are bearing the consequences of significant liquidations in altcoins. A wave of capitulations now represents more than 440 million dollars in just 24 hours.

The Crypto Market Winter Prolongs

The last 24 hours have put the crypto market to the test. The overall capitalization plummeted by 3%, reaching $2.45 billion. At the heart of this storm, almost all of the top 100 digital assets suffered significant losses.

Bitcoin lost 2% of its value, while Ethereum plunged by 3%. However, altcoins bore the brunt of the severe drops, with major tokens such as Fantom (FTM), Enjin (ENA), SUI, and Uniswap (UNI) experiencing declines of up to 17%. In this context, Bitcoin dominance even crossed the 56% mark, an unprecedented level since last March.

According to data from CoinGlass, these turbulences have led to the liquidation of 161,137 traders, totaling a colossal amount of $443.93 million. Ethereum faced $75 million in long liquidations, while Bitcoin accumulated $47 million.

The Shadow of Massive Unlocks Looms Over Altcoins

Many analysts identify the recent massive token unlocks as the main factor in this altcoin collapse. The company 10xResearch highlights the dumping of $483 million worth of tokens from projects such as Aptos, Immutable X, Strike, Sei Network, Arbitrum, ApeCoin, and Uniswap.

“Early investors and venture capital funds seem to be under enormous pressure to exit. These massive flows are causing Bitcoin to fall,” the company explains. Moreover, recent data reveals that U.S. Bitcoin ETFs recorded over $145 million in outflows on June 17th.

Michael Van de Poppe, a renowned crypto analyst, believes this downfall represents the final phase of capitulation for altcoins. “It’s the usual cycle, I have already seen it in 2020,” he comments.

This violent correction, although indicative of turmoil that seems far from over, could nonetheless be a decisive turning point for the crypto market. Indeed, such events, as painful as they are, have often served as a catalyst for a market reorganization.