The crypto market dropped sharply as, for the second day in a row, the world’s leading cryptocurrency, Bitcoin, fell nearly 3% in four hours, and massive liquidations swept across the crypto markets. The world’s leading cryptocurrency fell to $91,644.04, causing a massive sell-off in the market that wiped out over $138 billion from the market.
Over the last 24 hours, liquidations reached as high as $520 million. Most of this was through long positions, which wiped out $450 million, but short positions accounted for $66.06 million. The highest liquidation over the last 12 hours is $420 million. Short positions are losing their bets on Bitcoin’s price rise as some of them look to cut their losses.
The liquidation was massive, with 197,007 traders liquidated across different exchanges. The largest single liquidation happened on Binance, where a huge BTC/USDT position worth $8.21 million was lost.
This sharp drop shows that there has been a market correction following the recent rapid gains of Bitcoin. The sudden shift has caught many off guard, and it has once again shown how volatile the cryptocurrency market is, where prices can swing wildly in a short time.
With Bitcoin currently in this correction phase, it’s as if people are holding their breaths waiting for the price to stabilize or slide further. In this context, most of the investors will take a backseat, take some time to gauge the situation, and wait for better clarity before stepping forward again into this turbulent market.
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