The crypto market has faced a sharp decline, resulting in a loss of over 4%. Bitcoin and Ethereum have shown significant losses, triggering large-scale liquidations in the market.
Overall Decline in the Crypto Market
The crypto market continues to lose its position, with market cap dropping from $3.98 trillion to $3.82 trillion in just two days. This means over $160 billion has been erased from the market. Bitcoin dropped from $120,000 to $118,000, attributed to decreased demand. Ethereum failed to reach the $4,000 mark due to a significant sell wall at $3,850. Top altcoins like XRP, BNB, and Solana also faced selling pressure.
$1 Billion in Market Liquidations
Data from CoinGlass indicated over $1 billion in crypto liquidations, with nearly 300,000 traders liquidated in the last 24 hours. The largest liquidation order for BTCUSDC amounted to $2.96 million on Binance. The majority of liquidated positions included ETH, XRP, SOL, DOGE, and others.
Factors Behind the Drop in Crypto Assets
The sudden selling pressure on ETH was noted with the emergence of significant sell orders at $3,850. Analysts are predicting further price drops as altcoins displayed overbought signals. The Altcoin Season Index fell from 60 to 39, indicating funds have exited altcoins.
The decline in the crypto market is linked to heavy selling and increased liquidations. Upcoming events, such as options expirations, may continue to pressure the market, so investors should exercise caution.
