Liquidations are increasing even as the total market capitalization has plummeted by more than 6% in the past few hours.
According to CoinMarketCap, this caused about $200 billion to leave the market, reducing it to about $2.5 trillion.
CoinGecko reports slightly different numbers, putting the total cap down to around $2.6 trillion at the time of writing. However, it has remained flat for most of the past month.
$500 million liquidation approach
According to data from Coinglass, 154,176 traders were wiped out in the past 24 hours, with a total liquidation total of approximately $500 million. Most of them were long positions.
The big move was triggered by Bitcoin falling 4% to $66,750 during Tuesday morning trading in Asia. The asset lost about $2,750 within his two hours, and more positions were liquidated.
At the time of this writing, BTC is trading just below the $67,000 price level.
However, analysts remained unfazed, with CrediBULL Crypto stating, “All we have done here with this pullback is test two logical levels of support.”
Goldbug and Bitcoin mocker Peter Schiff commented This drop is equivalent to a $100 drop in the price of gold in 10 minutes.
“If this develops into something much bigger, ETF investors will be locked in until the New York Stock Exchange opens tomorrow,” he added.
However, as alarming as it may seem to crypto newbies, this market volatility and leverage flash-out is a regular feature of the crypto market. It is healthy for prices to return to unleveraged levels.
Altcoins will be hit even harder
As usual, the altcoin market suffered even bigger losses. Ethereum fell 6.5% to $3,350, down more than 30% from its all-time high.
After an epic rally, Solana fell 8.5% to $185, while Dogecoin crashed 11% to $0.192.
Other altcoins currently experiencing double-digit pain include Avalanche, which has fallen to $48, Shiba Inu, Bitcoin Cash, and Litecoin.
Most of the meme coins that degens has been sending out lately have gone up in value, with the exception of Book of Meme (BOME), which actually gained 12% on the day.
