Amid Crypto Market Crash: Expect $638M in Token Unlocks This Week

The cryptocurrency market has experienced a significant decline. Bitcoin fell below $80,000, briefly dropping below $75,000 earlier today. This crash wiped out over $2.5 billion in leveraged positions, causing the total market capitalization to drop below $3 trillion. Analysts attribute this downturn to a mix of disturbing issues.

Adding to the challenges, over $638 million in token unlocks are scheduled for this week. While these releases may increase volatility and trigger significant fear in the sector, investors still anticipate a rebound fueled by institutional buying.

Key Triggers and Immediate Fallout

Among the many factors that triggered the market crash, geopolitical tensions between the U.S. and Iran have been a major factor, creating caution in the market. The Federal Reserve’s signals have further worsened the mood. Over the weekend, Bitcoin breached key support levels but briefly stabilized at $81,000. It is, however, trading at $76,000 as of this writing. 

Ethereum also joined in with a 13% drop, indicating broader market weakness, as major networks and DeFi platforms suffered significant declines. Solana experienced a sharp drop, and XRP followed with similar losses. Overall, market sentiment remains bearish.

Long-term holders also contributed to the downturn, offloading billions in Bitcoin. This has resulted in trading volumes staying low, leading to increased volatility. Additionally, regulatory scrutiny on DeFi has contributed to the uncertainty. Analysts warn of deeper price drops if support levels fail. The quiet trading over the weekend revealed vulnerabilities, with prices fluctuating wildly. 

Upcoming Unlocks Spark Concerns

While the market grapples with current conditions, it faces significant token supply unlocks totaling over $638 million this week. These unlocks consist of both one-time events and ongoing releases. Among these is Hyperliquid’s HYPE, which was initially set to release 9.92 million tokens worth about $305 million but was later cut to around 140,000 tokens valued at roughly $4.7 million. 

Berachain’s BERA has a significant cliff release of about 65.66 million tokens, valued at about $30 million. This represents about 43% of its current circulating supply, raising concerns about possible short-term price swings. ENA will unlock 212.5 million tokens worth $29 million, which is about 2.9% of its adjusted released supply. 

Meanwhile, other significant releases include XDC, with 841 million tokens valued at $30.55 million (5% of the supply), and linear unlocks such as RAIN at $91 million and SOL at $48 million. Additionally, smaller events for projects such as CC, TRUMP, RIVER, WLD, and DOGE may also affect market liquidity, especially in the current economic climate.

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