Cardano, Avalanche Lead Crypto Decline in Volatile Trading Session

Altcoins posted a mixed performance as the crypto market declined ahead of a major options expiry for bitcoin on Friday.

AccessTimeIconDec 30, 2021 at 9:48 a.m. UTC
Updated May 11, 2023 at 4:45 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Cryptocurrencies continued this week’s slide on Thursday, with tokens of some of the largest blockchains by market capitalization falling as much as 6% in Asian trading hours before recovering slightly in early European trading hours.

The move came ahead of a $6 billion options expiry for bitcoin (BTC) on Friday during a low-volume holiday period marked by volatility and range-bound price movement for larger-cap cryptocurrencies. Options are hedging instruments that allow investors the right, but not the obligation, to buy the underlying asset at a predetermined price on or before a specific date.

Among larger caps, cardano (ADA) and avalanche (AVAX) fell 6% in the past 24 hours while solana (SOL) and terra (LUNA) lost 4%.

Prices of cardano and other tokens rallied in early European trading hours following a broader decline in the crypto market. (TradingView).
Prices of cardano and other tokens rallied in early European trading hours following a broader decline in the crypto market. (TradingView).

Tokens of layer 1 blockchains – native blockchains over which other products and services can be built – rose as investors looked beyond the Ethereum ecosystem, which is bogged by high fees and long transaction times. That narrative has driven prices of LUNA, SOL, near (NEAR), fantom (FTM) and others higher in the past few weeks.

Prices of bitcoin and ether (ETH), the two largest cryptocurrencies by market capitalization, posted a small decrease in early Asian trading hours on Thursday. European trading hours saw a sudden surge, with bitcoin gaining nearly $500. That led to a brief resurgence in other larger-cap cryptocurrencies, with the likes of ADA rising to $1.35 from $1.30 in a few hours and LUNA climbing to $86 from $81.

The rise in prices in European trading hours caused over $11 million in liquidations, data from analytics tool Coinglass showed. Slightly over 91% of these liquidations were on short positions, or from traders who’d bet on falling prices.

Liquidations occur when traders borrow funds from exchanges to bet on crypto prices using a relatively small initial capital, one that is forfeited when prices reach a predetermined liquidation level. Thursday’s figures contributed to over $400 million in liquidations in the past 24 hours, with over $274 million occurring on bitcoin and ether futures alone.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.