The cryptocurrency market experienced a significant downturn over the weekend, with Bitcoin, the leading digital asset, falling below the critical $60,000 mark.
The broader market also suffered, losing $179 million to liquidations, reflecting the growing bearish sentiment among traders.
Bitcoin Drops Amid Market Uncertainty
As of Monday morning, Bitcoin was trading at $59,804, marking a sharp decline from its previous levels. This drop below $60,000 highlights the bearish sentiment that has gripped the market.
The general cryptocurrency market followed suit, with its total market capitalization shedding 3.0 per cent to settle at $2.17 trillion.
Altcoins Mirror Bitcoin’s Decline
The decline in Bitcoin’s value was echoed across other major cryptocurrencies, particularly altcoins. Ethereum, the largest altcoin by market capitalisation, dropped to $2,540 on Sunday before recovering slightly to $2,669 at the time of the report.
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Among the top ten crypto assets by market capitalisation, Solana (SOL) was the hardest hit, falling by 3.2 per cent in the last 24 hours. Other notable declines included Bitcoin’s 2.3 per cent drop and Binance Coin’s (BNB) 2.0 per cent decrease.
$179 Million Lost to Liquidations
According to data from Coinglass, the crypto market saw $179.33 million in liquidations over the last 24 hours. This affected approximately 69,465 traders, with long positions bearing the brunt of the losses.
Long traders accounted for $126.21 million in losses, while short trades contributed $53.13 million. Bitcoin led the long position trades, accounting for $47.18 million in losses, followed closely by Ethereum with $46.95 million. Solana came in third, with $15.33 million in long positions liquidated.
The largest single liquidation order was executed on OKX, with an ETH-USD-SWAP valued at $2.17 million. Binance, OKX, and Bybit recorded the highest volume of trades among the top exchanges, as detailed in Coinglass’s data.
Bitcoin Price Analysis
As of the time of reporting, Bitcoin was trading at $59,804, reflecting a 1.1 per cent decline over the last 24 hours. The cryptocurrency saw a maximum price of $60,707 and a minimum of $57,814 during this period.
Despite the recent drop, Bitcoin remains up 16.0 per cent from its price seven days ago. However, the asset is still 19 per cent down from its all-time high of $73,737, which it reached on March 14, 2024.
Market Context: Recent Fluctuations
Last week, Bitcoin experienced a severe market crash, briefly falling below the $50,000 level. This crash was triggered by a combination of macroeconomic and crypto-specific factors, including a significant drop in Japan’s Nikkei index and large movements of Bitcoin to centralised exchanges by Jump Crypto. Since that downturn, the crypto market has shown some resilience, with Bitcoin recovering over $10,000 in value.
What’s Next?
The recent volatility in the crypto market underscores the unpredictability and sensitivity of digital assets to broader economic trends and internal market dynamics. Investors and traders alike are advised to stay vigilant as the market continues to navigate these turbulent times.
