The crypto market experienced a significant crash on Saturday, resulting in a 5% drop in the global market cap to $1.05 trillion within 24 hours. Over the past day, a staggering $350 million was liquidated as over 170,000 traders felt the impact. One of the most notable single liquidations occurred on the OKX exchange, involving an ETH-USD-SWAP valued at $2.18 million.
Bitcoin price plummeted 5% in just two hours, reaching a 24-hour low of $25,500. Currently trading near $25,600, there’s a strong possibility of it falling below the $25k threshold. Ethereum also experienced a 4% decline, with prices now trading below $1,750. Growing trading volumes continue to apply selling pressure on the cryptocurrency.
Many altcoins, including Filecoin, Polygon, Cardano, Solana, Chiliz, Sandbox, Decentraland, Axie Infinity, and others, fell by over 20%. Shiba Inu (SHIB), in particular, led the way with a 30% decline in the last 24 hours. However, some buying activity is apparent at these lower levels.
One possible reason for the crypto market crash is the major liquidations recorded in cryptocurrencies targeted in US SEC lawsuits against Coinbase and Binance. Binance.US’s decision to halt USD fiat support on its exchange and Robinhood’s move to delist Solana (SOL), Cardano (ADA), and Polygon (MATIC) further exacerbated the situation.
According to Coinglass, over $300 million in longs and $25 million in shorts were liquidated in the last 24 hours. The liquidations mainly occurred on Binance, OKX, and Bybit, with BTC ($47M), ETH ($38M), ADA ($15M), SOL ($14M), DOGE ($11M), LTC ($11M), FIL ($9M), and MATIC ($8M) featuring prominently.
Grayscale Investments has also filed a request with the US SEC to withdraw the Trust’s Registration Statement on Form 10 for Grayscale Filecoin Trust. Despite the SEC continuing to view Filecoin (FIL) as security, Grayscale maintains its belief that FIL does not qualify as such.
Notably, market makers such as Jump Crypto and Cumberland have withdrawn all liquidity from altcoins and were caught dumping significant crypto holdings to exchanges Binance and Coinbase. This has led to Binance.US partners’ reluctance to work with the exchange, triggering a major selloff across the market.
Additionally, over 4 trillion Shiba Inu (SHIB) tokens, worth millions, were moved from Shiba Staking to the Binance exchange, causing a selloff in both SHIB and BONE prices.
It’s vital for investors to conduct thorough market research before investing in cryptocurrencies, as the author or the publication does not bear any responsibility for personal financial loss resulting from market fluctuations and decision-making.
Source: Coingape
