Altcoin Market in Turmoil as Panic Selling Grips Ethereum (ETH) Market, Liquidations Hit Record Highs

The altcoin market's panic selling has only intensified as Bitcoin's price plummeted to $55,000. With the loss of the critical support of $3,000

The altcoin market has experienced significant panic selling, particularly following Bitcoin's price drop to $55,000. This decline in the primary cryptocurrency has led to a broader market correction, impacting various altcoins.

As Bitcoin's price fell below the crucial support of $58,000, Ethereum's price also faced a substantial decrease. This drop, along with the wider market correction, caused a 10–20% price decline for Ethereum and almost all of the top ten altcoins.

According to data from Coinglass, a total of 221,704 traders were liquidated in the past 24 hours, indicating the significant impact on traders. Binance had the highest single liquidation order, amounting to $18.48 million, in the ETH/USDT trading pair.

Moreover, Ethereum liquidations have outpaced Bitcoin liquidations on the hourly chart. In the past 24 hours, ETH liquidations totaled $107 million, while in the last hour, they reached $44.5 million. Notably, other altcoin liquidations have also surged.

Despite recent developments suggesting the potential approval of a spot Ethereum ETF by the end of July, the price of Ethereum (ETH) has reacted poorly and is largely in line with the broader market correction.

One Ethereum developer, Anthony Sassano, highlighted the ETH market structure and its implications for withdrawals from Grayscale's ETHE.

Sassano pointed out that ETHE has been trading at a premium, after months of trading at a discount of less than 2%. This raises questions about the number of investors waiting for the ETF conversion before selling.

Furthermore, Sassano noted the lack of clarity regarding ETHE pricing post-conversion. He suggested that Grayscale could significantly reduce or temporarily eliminate fees to attract investors to the mini-trust.

On social media platforms, the crypto market's steep decline has sparked widespread FUD (fear, uncertainty, doubt).

According to on-chain data provider Santiment, references to "sell" have exceeded those of "buy" on an hourly basis, a trend observed multiple times in the past day.

As highlighted by Santiment, this metric could potentially indicate an opportunity for bold traders to buy into the market on the other side of the crowd's fury.

Finally, the memecoin sector among altcoins has experienced the brunt of the losses, with the top memecoins dropping by 17-25%. It remains to be seen whether these coins will stage a comeback or if the fervor surrounding memecoins is ultimately fading.

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