The cryptocurrency market has entered a turbulent phase with Bitcoin (BTC), the world’s largest cryptocurrency, experiencing a sharp decline. In a few short hours, Bitcoin plunged from a high of $83,000 to below $80,000, marking a nearly 3% fall. At the time this article was written, the cryptocurrency was trading at $79,600, reflecting a 3.93% drop on the day.
This sudden downturn is not an isolated event but is part of a broader shift in the global markets. Fueling this shift is a risk-off sentiment and ongoing liquidity changes ahead of Wall Street’s opening bell. Interestingly, the drop comes after Bitcoin demonstrated an impressive resilience last week when markets worldwide were in a slump following the U.S. tariff announcement.
Over the past 24 hours, a staggering $390 million worth of crypto positions were liquidated. This figure includes $325 million in long positions, according to data from CoinGlass. Bitcoin accounted for $121.4 million of these liquidations, with Ethereum (ETH), the second-largest cryptocurrency, following closely at $108.6 million.
South Korea’s leading exchange, Upbit, is currently listing Bitcoin at a 1.83% premium. However, the overall crypto market cap has suffered a blow, falling to $2.59 trillion.
The drop has not spared Ethereum either, which has been hit particularly hard. Ethereum has sunk to its lowest level since October 2023 and is currently down 65% from its all-time high. This downward trend has further dented investor sentiment.
Commenting on the bearish market trend, economist and long-standing crypto skeptic, Peter Schiff, stated, “After a delayed reaction on Friday, cryptocurrencies are finally starting to crack. Bitcoin just hit a weekly low of $81,000. It could be a long day for those stuck in Bitcoin ETFs.”
Other significant altcoins have also been affected by the downturn. Solana (SOL) experienced $19.5 million in liquidations, XRP saw $8.6 million, and Dogecoin (DOGE) suffered $7.8 million.
While the current market scenario may seem bleak, it’s important to remember that the cryptocurrency market is notoriously volatile and such fluctuations are part and parcel of the crypto world.
*This article does not provide investment advice. Given the volatility of the crypto market, readers are advised to conduct thorough research and seek professional advice before making any investment decisions.
