Crypto Markets Experience Heavy Selling Pressure
The cryptocurrency market experienced heavy selling pressure over the past 24 hours, resulting in over $170M in liquidations. The majority of these losses were incurred by long positions in BTCUSD spot CFDs. Analyst Benjamin Cowen warns that Bitcoin may drop further towards a mid-cycle low around October.
Crypto outflows also saw $144.7M leaving the market on Monday, with spot Bitcoin ETF seeing significant withdrawals. On-chain metrics show active addresses and transfer volume near historical lows, while realized losses exceed gains, indicating modest profitability overall.
Volatility is expected to ease through August and September, but Cowen notes that on-chain metrics have not yet hit historical lows. The analyst also flags concentrated liquidation risk near $61,000, which could potentially trigger further downside pressure.