TL;DR Breakdown
- Over $237 million worth of Bitcoin has been liquidated in the last 24 hours.
- BTC prices have dipped below $40,000 as a result of the high USD index.
- BTC average transaction fees record the lowest figures in 2 years.
Another overnight bear market has seen a massive liquidation of Bitcoin around the industry. According to Coin Glass insights, over $237 million worth of Bitcoin was liquidated in the last 24 hours. This liquidation accounted for 79,710 traders selling their Bitcoin assets, as the leading crypto dips below $40,000.
BTC holders were accepting a short-term bull run from the leading crypto after the Terra foundation recently announced the purchase of $10 billion worth of Bitcoin to support its flagship stablecoin UST. The programmable stablecoin recently flipped BUSD to become the third stablecoin with the highest market capitalization.
However, the market declined overnight as the US dollar index gained significant strength with 100.612 basis points. This is the highest the USD has traded in the last 2 years since the start of the pandemic.
Bitcoin transaction fees are also declining
Although liquidation remains high in the 24 hours window, Bitcoin transaction fees are also declining. BTC currently recorded its lowest average transaction fees in the last two years. The average transaction fee per BTC transaction is currently sitting at $1.039. This is a 98% decline, as network fees were at all-time highs in April 2021, recording an average of $62.788.
The declining transaction fees were a critical trigger for the mass liquidation of BTC in the last 24 hours. However, it is expected that low transaction costs will also bring new traders into the Bitcoin market. If average network fees remain low, it will also help metaverse projects in integrating BTC to their virtual platforms and allow users to access them at a lower cost. So, despite the current bear market, the leading cryptocurrency might get back to its previous heights if transaction fees remain constant throughout the year.
