The cryptocurrency market is facing a short-term correction leading to significant turbulence. Despite a weekly gain of over 8%, the overall market cap has declined.
Market Trends
The overall crypto market capitalization slipped by 3.33% to $3.68 trillion. Meanwhile, trading volume surged by over 31%, reaching $257 billion, indicating panic-driven activity.
Liquidations
Nearly $501 million was liquidated across all crypto assets in just 24 hours. Long positions bore the brunt, losing $389 million compared to $112 million from shorts. Bitcoin accounted for $181 million in liquidations, with $142 million in longs and $39 million in shorts.
Risks for Traders
While the broader trend for Bitcoin remains bullish in the weekly timeframe, the sharp pullback highlights growing volatility and reinforces risks for traders using high leverage amid rapid price fluctuations.
The current correction in the crypto market reflects high volatility and risks associated with leveraged trading. Traders are advised to exercise caution.
