Key Points
- Over $300 million in leveraged crypto trading was liquidated in the last 24 hours, primarily due to Bitcoin’s price decline below $60k.
- Meme coin whales are accelerating profit-taking amid the ongoing crypto correction.
The past 24 hours have seen a liquidation of more than $300 million from leveraged crypto trading, largely due to Bitcoin (BTC) trading below $60k. The total cryptocurrency market cap has fallen to approximately $2.36 trillion, with Bitcoin’s price hovering around $60.6k during the early European session.
The decreased demand for spot Bitcoin exchange-traded funds (ETFs) in the United States has significantly contributed to the ongoing correction. Furthermore, the Bitcoin fear and greed index indicates growing concern among investors about potential bearish sentiment.
Profit-Taking by Meme Coin Whales
The meme coin industry, led by Dogecoin (DOGE), has lost over $20 billion in the past few weeks, dropping to about $49.6 billion on Tuesday. The ongoing crypto correction has led to whale traders accelerating profit-taking in the meme coin industry. Additionally, the price of Bitcoin could lead the crypto industry to further losses before an inevitable parabolic rally.
Two significant whale deposits of $25.95M worth of Shiba Inu (SHIB) and Pepe (PEPE) to Binance have been reported in the past 14 hours. A Shiba Inu (SHIB) whale address, which accumulated around 1.088 trillion coins late last year, deposited all the coins in the Binance exchange earlier today. The whale trader made an estimated profit of about $8 million.
Another crypto whale deposited 700 billion Pepe (PEPE) coins to Binance, worth nearly $8 million, earlier today.
Future Expectations
The meme coin industry is expected to continue experiencing heightened volatility amid the ongoing mainstream adoption of crypto led by institutional investors. If Bitcoin’s price continues in a choppy mode in the coming weeks, most of the meme coins will drop further before the buyers establish control.
However, according to popular crypto analyst Ali Martinez, the altcoin industry, led by Shiba Inu, Solana (SOL), and Cardano (ADA), could soon rebound. The analyst highlighted that the daily TD Sequential indicator has flashed a buy signal.
An investor has been spotted buying nearly 1 million dogwifhat (WIF), worth around $1.6 million, as calls for a market rebound accelerate. The crypto investor currently holds around 3.97 million WIF, worth about $7.3 million.
Overall Market Impact
The upcoming $9 billion market dump by Mt. Gox has sent shivers through the crypto market. The announced market dump will negate almost half of the gains made through the US spot Bitcoin ETFs since inception.
The meme coin industry will continue to follow the crypto cash rotation models. As a result, crypto traders should closely monitor the impact of the upcoming listing of spot Ethereum ETFs in the United States.
