Bitcoin (BTC) and Ether (ETH) kicked off the trading week with modest gains, with BTC trading above $41,000 and ETH slightly up, maintaining a position above $2,100. However, recent data from Coinglass reveals a tumultuous period in the crypto space, with $103.5 million in liquidations occurring over the past 12 hours. Of this total, $95 million pertained to long positions, indicating bets on higher prices. Notably, $33 million in Bitcoin positions were liquidated, with $29 million originating from long Bitcoin positions.
Cryptocurrency Market Sentiment and Predictions
Despite the recent challenges, Lucy Hu, a Senior Analyst at Metalpha, a Hong Kong-based digital asset management firm, highlights the resilience of the broader Market. Hu emphasizes that despite the recent Ledger hack causing a shift in sentiment within the decentralized finance (DeFi) space and raising concerns about wallet security, factors like rate cuts and growing interest in Bitcoin continue to support the market. The rise of Bitcoin Ordinals, in particular, fuels enthusiasm among miners, and Hu expresses confidence in the long-term growth momentum of Bitcoin.
Looking ahead, end-of-year predictions for 2024-2025 remain optimistic despite Bitcoin’s ongoing correction phase. Woo Network sets a target of $75,000 for BTC in early 2024, while Bitwise predicts a similar outcome, anticipating Bitcoin to trade above $80,000. Bitwise also foresees the approval of spot Bitcoin ETFs, predicting it will be the most successful ETF launch in history. Additionally, Coinbase’s revenue is expected to double, surpassing Wall Street expectations by at least 10 times.
Gas Fees Surge amid Memecoin Surge
Gas fees on Ethereum and various Layer-1 chains, including Avalanche, have experienced a notable spike due to an influx of new meme coins flooding the market. Avalanche, in the last 24 hours alone, generated $5 million in fees, while Ethereum, with its larger market cap, accumulated $13.52 million. Arbitrum and Optimism have also witnessed a significant increase in gas fees over the past week.
This surge in gas fees is attributed to the growing popularity of meme coins, which are clogging up Layer-1 chains. The impact is widespread, affecting the efficiency of transactions and leading to increased costs for users. As the Cryptocurrency Market navigates these challenges, investors and analysts remain watchful for developments that could reshape the cryptocurrency landscape in the coming weeks.