The past 24 hours have seen significant volatility in the crypto market, culminating in $287 million worth of liquidations following a period of uncertainty.
Bright Spot for the Crypto Market
Just a day ago, the market appeared quite promising. The Fear & Greed indicator returned to greed mode, reaching a level of 44. However, the situation quickly changed, and the optimism from earlier in the week vanished.
Price Drop of Popular Assets
Prices for popular cryptocurrencies like Bitcoin, Dogecoin, and XRP fell sharply. Bitcoin lost 2%, Dogecoin dropped 4.2%, and XRP lost 3.78% of its value. Yesterday's gains and the bullish market sentiment were overturned, revealing how the market penalizes excessive greed.
Impact of Market Liquidations
Around $300 million in perpetual futures on cryptocurrencies were liquidated in the past day, with 56% being long positions. This number might seem small compared to previous billion-dollar liquidations, but the sharp price reactions in digital assets were telling. Despite the uncertain future of crypto, one thing remains clear: the market is thin and volatile.
Continued volatility in the crypto market underscores the market's vulnerability, reminding investors to approach it with caution.
