Bitcoin and Ethereum Dip as Market Volatility Drives Down Prices

Bitcoin and Ethereum Drop as Market Faces Increased Volatility

Bitcoin and Ethereum– On Thursday morning, Bitcoin and Ethereum, along with other top 10 cryptocurrencies by market cap, are showing signs of sluggish performance.

As of now, Bitcoin’s price remains below $65,000, marking a 2.2% drop compared to the same time yesterday, according to CoinGecko data. Ethereum fares worse, with its price falling 3.7% over the past 24 hours to $3,185.22. This decline mirrors the drop in the price of Lido Staked Ethereum (stETH), an Ethereum liquid staking token.

Over the past day, the lagging prices have triggered the liquidation of $225 million worth of derivatives contracts, as reported by Coinglass. Approximately half of these liquidations, about $100 million, occurred in the last 12 hours.

Liquidation happens when a trader’s position is forcibly closed by an exchange or brokerage due to a margin call or lack of collateral. Margin trading allows traders to control larger positions with a smaller amount of their own money—like controlling a $10,000 position with just $1,000. With Bitcoin facing its third consecutive day of losses, there is a risk that it could drop further, as noted by BRN analyst Valentin Fournier in a report shared with Decrypt.

Solana (SOL) has experienced a 7.2% decline since yesterday, now trading at $169.13. The situation is even more severe for meme coins. Dogwifhat (WIF) has dropped 12% in the past 24 hours, and BONK (BONK) has fallen by 9%, according to CoinGecko.

Dogecoin (DOGE), the top meme coin in the Coingecko top 10, has also seen a nearly 4% decrease since yesterday, currently trading at $0.1205.

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