Bitget Research Institute: If ETH falls by 20%, it may trigger a liquidation risk of over $336 million
Chief Analyst Ryan Lee from Bitget Research Institute pointed out that as the market enters the second quarter, Bitcoin and Ethereum are facing a dual test of macro and technical factors. Currently, BTC is fluctuating in the range of $80,000-$86,000, while ETH is oscillating between $1,600-$2,200.
The 25% tariff policy previously proposed by Trump (scheduled to be implemented on Mexican and Canadian goods starting April 2) has sparked concerns about a restart of the trade war. The linkage between crypto assets and traditional markets has increased with BTC's correlation with NASDAQ reaching 0.67. If US stocks weaken subsequently it may drag down the crypto market.
ETF fund flows also show differentiation: BTC ETF continues to attract funds while ETH ETF funds continue to flow out indicating institutional preference leaning towards Bitcoin. Relevant data shows that if ETH falls 20% from its current price it will trigger more than $336 million in liquidations mainly concentrated on DeFi lending platforms. ETH's high dependence on leverage protocols could lead to chain selling pressure with $1,600 becoming a key support level which if broken could accelerate downward movement.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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