Over the weekend, Bitcoin (BTC) took a massive hit as the most dominant crypto asset plunged below $33,500 for the first time since January 2022. With that, the digital currency is now down by more than 50% since its peak in November 2021.
With a dip of almost 15% in the past 7 days, Bitcoin has remained one of the worst-performing cryptocurrency assets among the top 5. Amid price correction, long BTC liquidations increased sharply. According to the data published by Coinglass, almost $200 million worth of long crypto trading positions have been liquidated in the last 24 hours, the number includes the liquidation of $80 million worth of long BTC positions.
“With Bitcoin now having retraced all the way down to $33.9k, trader sentiment has fallen to six-week lows. We typically prefer to see capitulation signs like this, as weak hands leaving the space is generally what is needed for a truly notable bounce,” the on-chain analysis firm Santiment noted.
Retail and Institutional Interest
Despite the rising adoption of Bitcoin and other digital currencies, the overall retail, and institutional interest have dropped in crypto assets due to the recent market correction. In addition to price dips, Bitcoin investment products have suffered large outflows lately. In the week ended 29 April 2022, BTC investment products witnessed outflows worth $133 million, which is the highest level since June 2021.
“Bitcoin is seeing its 3rd largest capitulation week in over a year, in terms of its ratio of on-chain transactions taken at a loss. The last time BTC was this far negative for this metric was Feb. 16-22, when prices jumped +20% the following 9 days,” Santiment highlighted.
After the correction over the weekend, the total market cap of cryptocurrencies now stands at around $1.6 trillion. BTC currently has a market cap of $630 billion.
