With limited purchasing pressure over the previous several days, the crypto markets saw one of the largest long liquidation events since the crash of FTX last week.
Markets seemed to settle over the weekend after one of the greatest liquidation episodes in recent months, with major cryptocurrencies trading flat and alternative tokens displaying modest price movement.
As of the Asian afternoon, the price of bitcoin (BTC) was still over $26,000, while the price of ether (ETH) was almost unchanged from $1,670 on Sunday. There was a 2% decline in Xrp (XRP) and a 2% increase in Litecoin (LTC). The two were the lone big market movers that day.
Following the unsuccessful launch of its Ethereum layer 2 network Shibarium, the value of the meme currency shiba inu (SHIB) dropped by 2%, bringing its weekly loss to almost 21%. Over $1.7 million worth of tokens were locked in a bridge, or a mechanism used to move tokens between two blockchains, in the hours after the network went online last Wednesday due to a flaw in the coding.
Optimism (OP) and rollbit coin (RLB) are two examples of alternative cryptocurrencies that have seen price increases as a result of rising demand. With no letup in protocol use, RLB has increased by 18% in the last day.
According to Michael Silberberg, director of investor relations at AltTab Capital, Bitcoin investors are continuing to pile in since the price is undervalued compared to fundamentals.
"We've been seeing increased Bitcoin futures trading lately," Silberberg wrote to CoinDesk. While short positions have accounted for a larger share of open interest, long and short positions have accumulated in thin trading. Speculators gamble heavily on the direction of Bitcoin's price, as seen by this.
"Silberberg said : Despite this drop, we still saw net inflows over the past week as long-term investors, like ourselves, saw discounted prices as an opportunity to accumulate more Bitcoin,"
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