Bitcoin has suffered a significant drop, reaching its lowest value since mid-January, spurring massive liquidations in the cryptocurrency market.
Causes of Bitcoin's Decline
Last Friday, Bitcoin reached $99,500, driven by positive developments around Coinbase's legal issues with the SEC. However, by Monday, it fell to $94,000, and intensified selling pressure on Tuesday pushed it below $90,000.
Scale of Liquidations
The sharp decline in Bitcoin and other cryptocurrencies led to widespread liquidations. Over $1.3 billion in positions were closed within 24 hours, with long positions accounting for over $1.25 billion. The largest single liquidation was $20 million on the Binance exchange.
Impact on Cryptocurrency Market
Major cryptocurrencies like Ethereum, Dogecoin, and Solana suffered significant declines. The market was heavily impacted by a security breach at the Bybit exchange, where $1.4 billion was reportedly stolen, further eroding investor confidence.
The current state of the cryptocurrency market highlights its susceptibility to external factors and the need for caution among investors engaged in trading activities.
