The bullish narrative of this current cycle is being seriously tested as the cryptocurrency sector continues to experience a downturn. Recent data reveals that the total market capitalization of digital assets has plummeted below $2.7 trillion. Leading cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) have also witnessed substantial declines, hitting multi-month lows.
In a stark shift, Bitcoin fell below the $77,000 mark for the first time since November 2024. Fortunately for traders, the bulls stepped in to halt the steep decline, bringing the price back to approximately $80,000, according to data from CoinGecko.
Ethereum also took a hit, momentarily crashing below the $1,800 threshold, a level not seen since late 2023. Other notable cryptocurrencies such as Ripple (XRP), Cardano (ADA), and Solana (SOL) are similarly entrenched in the red, reflecting the broader negativity within the market.
The recent market decline has particularly affected traders who opened long positions with high leverage. According to CoinGlass, more than 330,000 of these positions faced liquidation in the past 24 hours, contributing to total liquidations nearing $950 million. The figures indicate that Bitcoin trades accounted for about $318 million of this total, followed by Ethereum with $250 million and Solana with around $50 million.
Notably, the largest single liquidation order occurred on the Bybit exchange, involving the BTC/USDT trading pair, resulting in a staggering loss of $5.26 million for the trader involved.
In the coming days and weeks, heightened volatility is anticipated in the crypto market. Influencing factors include potential negotiations for peace in Ukraine, the imminent release of the U.S. Consumer Price Index (CPI) data, and the upcoming Federal Reserve’s FOMC meeting. Traders and investors alike should remain vigilant as these developments could further impact market conditions.
Stay informed and prepare for what lies ahead in this fluctuating landscape.
