Crypto Market Slumps as Short Liquidations Hit Two-Year Low

Crypto markets observe a bearish trend on Friday, with reduced short crypto liquidations reaching their lowest levels since February 2024. Bitcoin exchange net flows decline by 227% to $114 million in the week following the Bitcoin Halving. Amidst global concerns and a drop in the Japanese yen, markets remain pressured.

The cryptocurrency market experienced a downturn on Friday, mirroring the broader market's negative sentiment amidst global economic concerns. The decline was accompanied by a significant drop in short crypto liquidations, reaching their lowest levels since February 2024.

At 4 p.m. Eastern Time, Bitcoin (BTC) traded at $63,876.32, down 1.4%, while Ethereum (ETH) declined by 1.1% to $3,139.89. Dogecoin (DOGE) also suffered losses, falling 2.2% to $0.1497.

The market's weakness was largely attributed to global concerns, including the Japanese yen's tumble to a 34-year low against the U.S. dollar. This uncertainty weighed heavily on both the stock and cryptocurrency markets.

In a significant development for the Asian market, Chinese investors with Hong Kong residence permits will now be allowed to buy shares in Hong Kong ETFs. This move could potentially boost demand for cryptocurrencies in the region.

Despite the market's overall decline, the total cryptocurrency market capitalization remained substantial at $2.36 trillion, although it had decreased by 1.07% in the past 24 hours. The number of traders liquidated stood at 48,733, with total liquidations reaching $119.34 million.

Notably, crypto short liquidations reached a low of $24.96 million as of April 26 at 3:30 pm ET, marking the lowest level since February 2024. Data from IntoTheBlock revealed a significant decline in Bitcoin exchange net flows, dropping by 226.6% to $114.4 million. Additionally, large transaction volumes narrowed by 23.6% to $37.98 billion.

Among the top losers in the market were Wormhole (WORM), which declined by 10.0% to $0.5994, Pendle (PENDLE), which lost 9.9% to $5.44, and Arweave (AR), which fell by 8.0% to $8.22.

Crypto veteran trader Michaël van de Poppe observed that Bitcoin remains range-bound but anticipates better performance from altcoins. Meme coin analyst Murad outlined potential price targets to assess whether the current range represents accumulation or distribution.

Trader Tim expressed optimism for the crypto market, stating, "If the ship goes down, I'll join you, but I think we'll go higher after May." He emphasized the long-term growth potential of cryptocurrencies.

The upcoming Future of Digital Assets event hosted by Benzinga on November 19 is expected to provide in-depth analysis and insights on these market trends.