Nearly $150 Billion Wiped Off in Fresh Market Selloff as Bitcoin and Altcoins Dip, Here Is What Analysts Say

Bitcoin and altcoins fell sharply in a fresh market selloff on Feb. 24 amid escalating geopolitical uncertainties. As seen on CoinMarketCap, the cryptocurrency market is a sea of red once again, with some of the leading altcoins plunging by more than 10%. Bitcoin dipped to fresh lows of $34,322, the lowest level in a month while Ethereum plunged nearly 12% and was trading at $2,376 at press time.

More than $150 billion has been wiped off the entire cryptocurrency market in the last 24 hours as the total market capitalization has now shrunk to $1.58 trillion, as per CoinMarketCap data.

In the last 24 hours, Bitcoin-tracked futures saw $143.29 million in liquidations – the most among all cryptocurrencies – followed by Ethereum futures at $120 million. Overall the crypto markets saw over $457.55 million in liquidations as per Coinglass data.

Cardano (ADA), Avalanche (AVAX), Polygon (MATIC), XRP (XRP) are marking losses between 11% to 16% in the last 24 hours.

As BTC price action dipped lower, sentiment played catch-up as the spot price complemented bearish signals from markets. The overall sentiment measured by the Crypto Fear & Greed Index reversed to ”extreme fear” from neutral levels. Bitcoin trades at $35,442.

Here is what analysts say

According to crypto trader cum economist, Alex Kruger, the possibility of further decline remains: ”Crypto has been going down as both algorithmic and discretionary traders are treating Bitcoin as a risk-on asset highly correlated with stock indices. Fundamental investors who are bullish Bitcoin as an alternative currency may get their day once panic subsides”.

He continues ”How low is enough? Don’t know. Prices could still drop a lot more. Good luck identifying the bottom before it happens.Quite confident though prices will be much higher in three months”.

Some analysts believe that Bitcoin could see lows at around the $30,000 mark with the key level being the low between $28,000 and $29,000 seen last July. Du Jun, co-founder of cryptocurrency exchange Huobi recently predicted that a new Bitcoin bull market may not happen until late 2024.

Amid the rising geopolitical uncertainties, observers foresee a shallow tightening cycle with fewer rate hikes than expected. Analysts predict a shift in focus from inflation to geopolitics could perhaps bring some relief to Bitcoin and other asset prices.

Image Credit: Shutterstock