Bitcoin’s price took a sharp downturn, leading to a high amount of liquidations across the market.
Hello 58k, my old friend!
Bitcoin’s price dropped dramatically in the middle of the week, hitting a nine-day low of just above $58,000.
This caused a pretty big turmoil in the whole cryptocurrency market, with altcoins like Ethereum, Solana, or Dogecoin experiencing painful losses. The total value of liquidations now far exceeds $300 million.
Bitcoin started the week with a strong performance, nearly reaching $65,000 on Monday morning.
Everyone was happy. But it couldn’t sustain this momentum, falling back to $64,000 later that day.
Tuesday began with less market movement, but the situation worsened later as Bitcoin’s price dropped to $63,000. Everyone was less happy, and some kind of fear showed up, about bears.
The fears were based. The bears took control, pushing Bitcoin down to $58,100 on Bitstamp, the lowest level since mid-August.
Followed with a light rebound, to around $59,500, it remained down 6% for the day. The cryptocurrency’s market capitalization also suffered big time, falling from $1.240 trillion to $1.170 trillion.
Altcoins decimated
The downturn hasn’t been limited to Bitcoin, alts faced even greater losses. Ethereum fallen by over 8% and is now struggling to stay above $2,500.
Other big capitalization cryptocurrencies like Solana, Dogecoin, Avalanche, Shiba Inu, Bitcoin Cash, Polkadot, and Chainlink have also seen declines of up to 8%.
Some digital assets experienced even harder drops, with MATIC, SUI, Fetch.ai, Lamden, and Pepe Coin even showing double-digit percentage losses.
Overall, the total crypto market has shed more than $100 billion in market cap in just one single day.
Don’t do leverage!
The market’s extreme volatility heavily impacted traders who had taken on excessive leverage.
Based on the data, nearly 90,000 traders have been liquidated, with the total value of these liquidations surpassing $320 million.
The largest single liquidation occurred on Binance, involving a position worth more than $12.5 million.
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