The cryptocurrency market experienced a significant downturn, with Bitcoin and altcoins suffering heavy losses. A massive liquidation wave resulted in the shedding of around $80 billion from the total market capitalization. Bitcoin, in particular, saw a sharp 5% drop in just an hour, contributing to the broader market correction that occurred during the Asian trading session.
Coinglass reported over $354 million in crypto liquidations over 12 hours, predominantly from long positions, amounting to around $313 million. The 24-hour total surpassed $400 million, affecting 117,770 traders. Bitcoin's daily loss stood at 4.4%, dropping to $41,926, indicating a potential further decline to $39,500.
Some analysts view this event as a strategic leverage flushout, targeting high-leverage traders. The upcoming week's economic events in the U.S., including Federal Reserve meetings and inflation data, are expected to contribute to increased market volatility. Altcoins have also recorded substantial losses, with Ethereum down 5% and others experiencing even steeper declines
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.