Crypto traders were taken off guard when the market took a break from recent losses, dumping $230 million in holdings in the last 24 hours. After losing more than $200 billion in five days, total market capital appeared to be around $1.7 trillion this week.
Traders expecting a further collapse in markets were disappointed, according to data from coinglass, as crypto traded flat. In the last 24 hours, $96 million in short positions were liquidated, with Bitfinex having the highest ratio of short holdings at roughly 86 percent.
After the US indicated probable penalties on Russian energy this week, sentiment had shifted entirely negative, sending equity markets into a tailspin. Crypto markets, on the other hand, had held up well.
After falling 17 percent in less than a week, Bitcoin seems to have found support at $38,000, where it has remained since Sunday. However, this caught investors off guard, as they had expected the currency to drop to $34,000, the low point of its losing streak in February.
Long positions worth $121 million have been liquidated in the last 24 hours. The majority of traders, according to data, were preparing for a market recovery, similar to the one observed at the end of February, when increased whale trading prompted crypto markets to jump by $400 billion.
Despite the deterioration in market sentiment, institutional crypto investment looked to be robust. Institutional investors acquired $127 million worth of crypto products in the last week, according to Coinshares data, despite the threat of greater economic disruption from Russia’s sanctions.
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