The crypto market is experiencing a significant downturn today, following several positive developments in recent days. The price drop has shifted overall sentiment toward bearish, resulting in half a billion dollars of crypto liquidations in the past 24 hours.
$544 Million Worth Crypto Liquidation
According to on-chain analytics firm Coinglass, during the market downturn, over $544 million worth of open positions were wiped out. These substantial liquidations have potentially created fear among traders and investors, pushing the market toward a bearish trend.
Reason Behind Crypto Market Down
The potential reasons behind this market downturn and millions worth of crypto liquidations include a hack of the world's largest crypto exchange, Bybit, which recently lost $1.4 billion worth of Ethereum (ETH), and ongoing economic tensions between the United States and countries like China and Canada. Additionally, the sharp decline in Bitcoin (BTC) price due to heavy selling pressure and ETF outflows from asset managers is significantly influencing the market.
Expert Comments on Current Market Sentiment
Experts such as Tara McAulay, former co-founder of Alameda Research and CEO of Pharos, raise concerns about a potential further decline, hinting at a market crash similar to 2020. In this bearish market sentiment, major assets like Bitcoin (BTC), Ethereum (ETH), and XRP have seen price drops of over 0.45%, 1.5%, and 3.5% respectively in the past 24 hours, further influencing overall market sentiment.
The crypto market remains under pressure from a combination of factors, including hacks and economic tensions, leading to significant financial losses and negative investor sentiment.
