In the last 24 hours, a significant liquidity drop occurred in the cryptocurrency market, resulting in a loss of $805 million, according to Coinglass data.
Massive Liquidations
According to the data, over $700 million of the total were long positions liquidated, indicating the closing of large bullish bets in the market.
Reasons Behind the Crash
The strong pressure on the market is associated with several factors: 1. **Long Positions**: A staggering number of bullish bets were decimated, reflecting overexposure to overoptimistic positions. 2. **Altcoins Lead the Losses**: The altcoin sector, including Ethereum, Solana, Dogecoin, and Cardano, absorbed the sharpest losses. 3. **Macro Pressures Mount**: A strong U.S. dollar, unchanged interest rates, and new trade-related regulatory headwinds have increased investor risk aversion.
What's Next?
Market volatility may persist. All eyes will be on key support levels for Bitcoin, such as the $113,500–$114,000 range. The Crypto Fear & Greed Index has retreated to neutral, indicating fragile market confidence.
The current situation in the cryptocurrency market highlights the importance of monitoring market conditions and key price levels. Observing market participants' reactions may provide insights into further developments.
