Crypto Market Experiences Downturn With $350M in Liquidations Within 12-Hour Span
The cryptocurrency market is awash in red this Monday morning, as Bitcoin endures a 5% slump within a short hour, while altcoins face significant losses. Compounding matters, liquidations have reached several hundred million dollars over the last few hours.
The correction in the crypto market is now underway, evidenced by the millions in liquidations that took place during the Asian trading session on Monday morning.
Crypto Leverage Wipeout
Recent data from Coinglass reveals that there have been $354 million in crypto liquidations over the past 12 hours. The majority of these liquidations have affected long positions, totaling around $313 million.
Additionally, Coinglass reports that liquidations in the last 24 hours amount to just over $400 million, resulting in 117,770 traders being liquidated.
Bitcoin prices currently sit at a 4.4% daily drop, with the asset trading at $41,926 at the time of writing. Within a span of less than two hours, BTC experienced an intraday low of $41,783 after reaching an intraday high of $44,000.
At present, it appears that the asset has found support at its current levels, as a rarely seen “Bart chart” formation begins to take shape. Should a further decline occur, BTC prices could approach $39,500.
For more information, read: Top 10 Cryptocurrencies to Consider Investing in December 2023.
Renowned crypto trader “RamenPanda” remarked, “I have consistently cautioned about flash dumps. Now, the dump has been completed.”
He added, “It will take a considerable period of consolidation for Bitcoin to resume its upward trend,” while also predicting that altcoins would soon begin moving.
Others have posited that this recent event was merely a calculated move to liquidate highly leveraged speculators. Crypto trader “ImNotTheWolf” states, “This was a 100% planned and orchestrated move to liquidate high-leveraged gamblers.”
Furthermore, the upcoming week in the US economic calendar promises to be busy, as Federal Reserve meetings and inflation data often result in heightened market volatility – as is already evident this week.
No Altseason Yet
As per usual, altcoins are experiencing more substantial losses. The total market capitalization has decreased by approximately $80 billion or 4% over the past few hours.
Ethereum, at the time of writing, has suffered a 5% daily downturn, currently trading at $2,238. Conversely, other altcoins face even steeper losses.
XRP, for instance, has plummeted by 7% today, resting at $0.621, while Solana (SOL) experienced a 5.7% drop, currently priced at $68.90.
Other top cryptocurrencies like Cardano (ADA), Polkadot (DOT), Chainlink (LINK), Polygon (MATIC), Shiba Inu (SHIB), and Litecoin have all incurred losses surpassing 6%.
A handful of altcoins, however, are defying the trend today, particularly Avalanche (AVAX), Immutable (IMX), and Injective (INJ), all of which are experiencing gains.