The overall crypto market has recorded selling momentum as ‘bottom’ recoveries continue. The escalated bearishness saw over 62K traders liquidated within July 13’s final 24 hours (CoinGlass data). Additionally, more than $180 million faced liquidation within that timeframe.
The Bearish Fight
The bull market end and fall of the leading projects have seen investors incurring massive losses. The crypto market’s overall performance has deteriorated since 2022 started. The top cryptocurrencies, BTC and ETH, have suffered amidst the market downturn.
Moreover, Bitcoin has lost over 70% since hitting its ATH, whereas Ethereum declined by approximately 75% from ATH. Meanwhile, the former still faces higher downside risks. The extra momentum as investors buy massive put options also explains the prevailing price actions in the crypto market.
However, why the unprecedented fall in price? Well, the enormous selling catalyzed by institution liquidations has attracted it. The price movement graph confirms this case for the leading crypto.
The publishing platform Medium’s weekly crypto review highlighted the continued selling wave from institutions’ liquidation significantly affected the derivatives market, ensuring prolonged risk aversion sentiment. The volatility surface inversion is among the risk aversion manifestation.
Besides that, the Medium analysts expounded on Bitcoin’s gamma exposure than ETH. Continued ‘negative’ gamma contact means any hedging from option sellers amidst price declines will propel extra selling strength, further soaring the crypto market’s risk level.
Moreover, the Medium graph shows BTC exposure has no effective control. Meanwhile, ETH boasts a well-controlled exposure (the blog indicated). That offsets the potential of extra selling momentum.
The Neutral Side
The cryptocurrency industry witnessed patterns of soared remarks of peak bearishness occurring after prices fell and before they reversed or flattened. That means the bear market awareness saw a significant dip since the previous month, with traders adopting a more neutral stance.
Bitcoin struggled beneath the crucial $20,000 during this publication. The dominant crypto changed hands at $19,984, losing 0.92% over the past day. Also, ETH battles bearish tendencies at $1,099, following a 1% 24-hour loss. Prices remained with the faded movements within the past few sessions, and downside risks dominate.