The global digital assets market saw a sharp decline of over 4% in the last 24 hours as Bitcoin struggled to maintain its bullish momentum. The Fear and Greed Index, which recently indicated “Greed,” has shifted to a “Neutral” position with a score of 60, reflecting a growing caution among investors following Bitcoin’s recent halving.
Market Overview
The total market capitalization of cryptocurrencies now stands at $2.37 trillion, experiencing a significant increase of 13% in 24-hour trading volume, which now totals approximately $83 billion.
Tax Proposals Impact
The downturn was influenced by U.S. President Joe Biden’s proposal to raise the capital gains tax rate to 44.6%—the highest since 1922. Currently, the top long-term capital gains tax rate is 20%. Additionally, a new 25% tax on unrealized capital gains for the wealthy has been proposed.
Liquidation Surge
Data from Coinglass reveals that over 91,000 traders were liquidated in the past day, with total liquidations amounting to about $209 million. The largest single transaction occurred on the OKX exchange, involving an ETH-USD-SWAP valued at $5.66 million.
Interestingly, the majority of these liquidations, representing 84% or approximately $176 million, were long positions. This indicates that many investors were anticipating a market rebound or surge following the recent declines.
Bitcoin’s Performance
Contrary to expectations post-halving, Bitcoin has not seen the anticipated surge. Instead, it has fallen by more than 4% in the past 24 hours, now trading at an average price of $63,861. This marks a significant drop of over 13% from its all-time high of $73,750 recorded on March 14, 2024. Additionally, Bitcoin’s 24-hour trading volume has surged by 28% to $31 billion.
As a result, Bitcoin’s market capitalization has decreased, currently standing at $1.2 trillion, with a 10% drop observed over the last 30 days.
Not a financial advice.