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Crypto market in sharp decline: The numbers of a fiery February
By Daniele Corno
February brings with it sharp declines in the crypto market, with sales driving down prices and interest: Some numbers of these strong sales
Liquidation and collapse of interest
The month of February brought heavy sell-offs in the sector, with sharp contractions in the price of crypto-assets and continuous phases of uncertainty.
Bitcoin lost 17.65% in price while altcoins suffered much greater losses. Ethereum, first and foremost, lost 32% against the dollar and the price against Bitcoin lost almost 18%.
The results for altcoins are no different, with losses averaging -30% for the most capitalized, bringing the market into a Bitcoin Season phase with a level of 24 according to the “altcoin season index.”
The watchword for February is LIQUIDATION. According to data from Coinglass, total liquidation on exchanges is over $12 billion. Of this, $8.290 billion relates to long positions while the remaining $3.3 billion relates to short positions, making it one of the worst months in recent years.
The result is a huge collapse in the values of open interest on the exchanges. The value of open positions on Bitcoin has plummeted from $61.6 to $50.7 billion, a drop of 17.7%, while on Ethereum we have gone from $32 to $19.7 billion, a drop of 34.7%.
Record outflows
The general outflow involved significant sales from US spot ETFs on Bitcoin, while despite the sharp drop in Ethereum, flows remain positive.
-$3.482 billion is the result of sales on Spot Bitcoin products, while the Ethereum countertrend shows inflows for the modest figure of +$56.6 million.
As an obvious consequence, on the altcoin market, both for big caps and mid-caps, the numbers are much worse. In fact, prices have completely canceled out the $Trump Trade that started in November.
The result is a market cap that goes from $3,700 to $2,900 billion, with over $800 billion eroded from the market. Of these, over $200 billion, equal to 25%, are related to the Altcoin market, excluding BTC and ETH.
A complex phase for the market that, between heavy sell-offs and macroeconomic uncertainties, is still waiting for a recovery phase.
