Bitcoin, Ethereum, XRP, Dogecoin Drop 5% After Liquidations Top $1.5 Billion

Bitcoin experienced a significant decline of 5%, dropping to $77,000 amid growing concerns following a reported hack of Binance, which has led to nearly $2 billion in liquidations across the cryptocurrency market.

According to data from Coinglass, over the last 24 hours, a total of 252,534 traders faced liquidations, amounting to approximately $1.65 billion. Meanwhile, figures from SoSoValue indicated that on Thursday, Bitcoin exchange-traded funds (ETFs) saw net inflows of $17.07 million, while Ethereum ETFs experienced net outflows totaling $105.5 million. Additionally, the past day saw significant losses for cryptocurrencies such as Bitway, Injective, and Pearl.

In notable industry developments, Coinbase CEO Brian Armstrong stated that quantum computing represents a greater threat to the cryptocurrency sector than artificial intelligence, emphasizing that it is a matter of "when, not if." In the wake of the $6.3 billion hack on Binance, a crypto wallet firm has issued an urgent security warning regarding potential hardware tampering.

As for the potential impact of the U.S. midterm elections on the cryptocurrency market, Grayscale has suggested that the results may only matter "at the margins." In a contrasting trend, the meme-based cryptocurrency Pepe surged by 15%, while both Dogecoin and Shiba Inu saw declines in value following the Binance incident.

Looking ahead, market analysts are pondering whether Bitcoin can maintain its position after this recent selloff. Technical analysis will play a crucial role in determining its resilience. Nic Puckrin, a cross-asset analyst and founder of Coin Bureau, shared his insights with Benzinga, noting that Bitcoin's response to the hack has been relatively subdued thus far. However, he cautioned that if hackers begin to sell off the stolen assets, it could exert additional downward pressure on cryptocurrency prices.

Puckrin anticipates that prices may remain weak in the short term, even if the immediate impact on users is limited. However, he does not foresee a collapse similar to that of FTX or a repeat of the market crash that occurred on October 10.

Regarding the upcoming elections, Puckrin highlighted a historical trend where Bitcoin tends to drop immediately following the vote, but often rebounds strongly within the ensuing 12 months. He also warned that a Democratic majority could potentially dampen sentiment in the crypto market due to fears of stricter regulations and a less favorable political climate for digital currencies.