A wave of selling took over the cryptocurrency market on April 7 after the price of Bitcoin (BTC) dropped below $ 56,000.
The market-wide sell-off resulted in a $ 1.4 billion liquidation, and some analysts have speculated that this could be the final sweep of over-leveraged long traders before Bitcoin can rally to the $ 70,000 level.
One sign that the market moved ahead in the past week was the rapidly growing premium for kimchi, which was followed by a 7% decline in BTC on April 7 as traders feared this could be a signal for a market top.
Despite the market downturn, on-chain data analysis suggests that Bitcoin may soon see a rise to new all-time highs as whales, miners and long-term holders have declined or stopped selling altogether and institutional demand remains strong.
Traditional Markets Around Record Highs
Equity markets traded near their all-time highs on Tuesday as accelerated job growth, record levels of activity in the services sector, and expansion in manufacturing sparked unexpected optimism that boosted stock prices.
Despite this positive news, the Dow and NASDAQ closed 0.06% and 0.16% lower, respectively, while the S&P 500 managed to close the day with 0.06% gains.
Coinbase Listing Provides Little Relief
Several altcoins managed to gather within a day after Coinbase announced that 1INCH, Enjin (ENJ), New Kind of Network (NKN) and Origin Protocol (OGN) will be listed on Coinbase Pro.
Starting today, incoming transfers for 1INCH, ENJ, NKN and OGN are available in regions where trading is supported. Traders cannot place orders and no orders will be executed. Trading will begin at 9:00 AM PT on Friday September 4th, or thereafter if liquidity conditions are met. https://t.co/L5KlZvMiuA
– Coinbase Pro (@CoinbasePro) April 7, 2021
Following the announcement, the price of 1INCH and ENJ rose slightly 5%, while Origin Protocol rose 10% and NKN rose 27%.
Solana (SOL) is also up 10%, while Ethereum (ETH) is down 7% and is trading below $ 2,000.
The total cryptocurrency market capitalization is now $ 1.90 trillion, and the Bitcoin dominance rate is 55.6%.
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