Crypto Market Plummeted: Bitcoin and Altcoins Face Heavy Losses Amid Massive Liquidations
Crypto News – The cryptocurrency market is currently experiencing a tumultuous period, marked by a significant downturn this Monday morning. Bitcoin, the flagship cryptocurrency, has notably declined by 5% within just an hour, triggering a ripple effect across the altcoin sector, which is enduring substantial losses.
This downturn signals a broader market correction, particularly evident in the Asian trading session on Monday morning, where a flurry of liquidations have been recorded.
A Sizable Crypto Liquidation Event
In the last 12 hours, the crypto market has seen a staggering $354 million in liquidations, as reported by Coinglass. A majority of these were long positions, with liquidations approximating $313 million. Extending the timeframe to the past 24 hours, the total liquidation value slightly exceeds $400 million, impacting 117,770 traders.
Bitcoin‘s value has decreased by 4.4% over the day, dropping to $41,926 at the time of writing. The cryptocurrency experienced a sharp fall of almost 5% in under two hours, plunging from an intraday high of $44,000 to a low of $41,783.
Currently, Bitcoin seems to be stabilizing at these levels, exhibiting a rare “Bart chart” pattern. Should this trend continue, Bitcoin’s value could potentially decrease to $39,500.
Market Insights from Crypto Traders
RamenPanda, a crypto trader, commented on the situation, stating, “I have repeatedly warned about flash dumps. Now, the dump has completed.” He also noted that Bitcoin might experience a prolonged period of fluctuations before it can resume an upward trajectory, and predicted that altcoins might start to gain momentum.
Another trader, ImNotTheWolf, suggested that the recent events are a deliberate move to eliminate highly leveraged positions. “This was a 100% planned and orchestrated move to liquidate high-leveraged gamblers,” he remarked.
A Volatile Week Ahead
The upcoming week is poised to be eventful in the U.S. economic sphere, with Federal Reserve meetings and inflation data releases. Such events typically lead to increased market volatility, which is already becoming apparent.
Altcoins Facing the Brunt
While Bitcoin’s decline is significant, altcoins are bearing the brunt of the market downturn. The total market capitalization has diminished by about $80 billion, or 4%, in a matter of hours.
Ethereum, for instance, has fallen by 5% today, standing at $2,238. Other altcoins are facing even steeper losses. XRP has dropped by 7%, Solana by 5.7%, and others like Cardano, Polkadot, Chainlink, Polygon, Shiba Inu, and Litecoin have all experienced over 6% losses.
Contrarily, a few altcoins like Avalanche, Immutable, and Injective are defying the trend and registering gains.
This scenario paints a vivid picture of the current state of the crypto market, underscoring its volatility and the rapid changes that investors and traders must navigate.
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