The cryptocurrency markets are experiencing a notable downturn this Monday, witnessing a significant drop in Bitcoin’s value by 5% within a short span, accompanied by substantial losses in altcoins. Liquidations have surged into the hundreds of millions in the past few hours.
During the Asian trading session on Monday morning, the crypto market saw a considerable correction, marked by a series of liquidations amounting to millions.
Leverage Flushout: Coinglass reported liquidations totaling $354 million over the last 12 hours, predominantly impacting long positions, with approximately $313 million liquidated. The past 24 hours have witnessed over $400 million in liquidations, leading to the liquidation of 117,770 traders, according to Coinglass.
As of writing, Bitcoin’s prices have plummeted by 4.4%, currently standing at $41,926. Within a short duration, BTC experienced nearly a 5% drop, hitting an intraday low of $41,783 from its high of $44,000.
With Bitcoin seemingly finding support at current levels, an uncommon “Bart chart” pattern has emerged, signaling a potential further decline to $39,500.
Crypto analyst “RamenPanda” highlighted the sudden downturn, suggesting a prolonged period of price fluctuations before Bitcoin resumes an upward trend. Meanwhile, other traders interpreted this drop as a deliberate move to liquidate highly-leveraged players.
The upcoming week is poised to be eventful due to scheduled Fed meetings and inflation data in the US, which typically escalate market volatility.
Altcoins and Market Capitalization: Altcoins, as expected, are facing more significant losses. The total market capitalization has decreased by about $80 billion, marking a 4% decline within a few hours.
Ethereum has dipped by 5%, currently priced at $2,238. Other altcoins, however, are experiencing more pronounced declines.
XRP has seen a 7% drop, hitting $0.621, while Solana (SOL) has decreased by 5.7%, reaching $68.90.
Altcoins like Cardano (ADA), Polkadot (DOT), Chainlink (LINK), Polygon (MATIC), Shiba Inu (SHIB), and Litecoin have all faced losses exceeding 6%.
A few exceptions to the downturn include Avalanche (AVAX), Immutable (IMX), and Injective (INJ), which are making gains amidst the broader negative trend.
