Cryptocurrency, Futures Market Liquidation, 'Plummet'

Coinglass: "Futures market liquidation of about 2.1459 trillion won on the 25th"
Large-scale liquidation causes BTC and altcoins to plummet in the late afternoon of the 25th
Binance CEO: "Cryptocurrencies will recover like before after the sharp drop"

Cryptocurrencies, including BTC, plummeted on the 26th due to large-scale futures market liquidation.

According to data from the on-chain analysis platform Coinglass, the cryptocurrency futures market liquidation amount reached $1.5 billion (about 2.1459 trillion won) on the 25th.

The funds of futures market investors who had been betting on a rebound in the recent downtrend were massively liquidated on the night of the 25th, causing BTC to drop by up to 7% and altcoins by an average of over 15%.

While BTC rebounded by about 2% in the early morning of the 26th due to inflows of low-price buying pressure, and altcoins also rebounded by an average of about 5%, they have not been able to make up for the decline.

◇BTC = As of 4 pm on the 26th, the BTC price on Upbit is 12,886 million won. BTC dominance is 61.08%.

According to the on-chain analysis platform Glassnode, the long (bullish) and short (bearish) betting ratio in the BTC futures market is 73.44% and 26.56%, respectively.

Despite the sharp drop in BTC, experts believe that the BTC bull market has not yet ended.

Changpeng Zhao, CEO of Binance, said in his X account at the time the BTC crash began on the 25th, "Such a sharp drop in the cryptocurrency market has happened before, and the market recovered even more strongly at that time," and "The market's sharp drop is just a tactical retreat, not a change in trend."

CEO Changpeng Zhao emphasized that cryptocurrencies have shown much faster recovery power compared to traditional assets.

He explained, "The cryptocurrency market has fallen due to macroeconomic factors like traditional assets, but unlike traditional assets, it has shown a faster recovery," and cited the example of BTC falling below $20,000 and then recovering after the US Federal Reserve's interest rate hike decision in 2022 as evidence for maintaining optimism.

◇Rising Coin = The cryptocurrency that recorded the largest increase compared to the previous trading day on Upbit as of 4 pm on the 26th is STPT, which rose about 8% from 24 hours ago.

STPT is an Ethereum-based token that circulates on a smart contract platform that can tokenize assets in a way that complies with regulations in various countries around the world.

STPT was co-founded by Chinese Mike Chen and Korean Lee Shin-hye, and is traded not only on Upbit but also on global exchanges such as Binance and Huobi.

◇Fear and Greed Index = The Cryptocurrency Fear and Greed Index provided by Alternative is 21 points, maintaining the 'Fear' stage. The Fear stage (20-39) is a period of high price volatility and trading volume, where prices are declining. There is a high likelihood of forming a short-term bottom, so caution is needed when buying.

The Cryptocurrency Relative Strength Index (RSI) provided by Glassnode is 29.3, recording an 'oversold' state. RSI measures the relative strength of the upward and downward pressure on the price of a specific asset, indicating the degree of overbought and oversold of the asset.

Reporter Kwon Seung-won ksw@blockstreet.co.kr