The global cryptocurrency market recently experienced a significant crash as selling pressure among traders increased, causing the cumulative digital asset market cap to drop by a massive 4% over the past day. This dramatic drop, which brought the market cap down to around $1.02 trillion, coincided with the Federal Reserve’s decision to pause rate hikes for the first time in the last 15 months.
Data from Coinglass paints a vivid picture of the fallout, with over 46,000 traders being liquidated in the last 24 hours. This resulted in a total liquidation value of approximately $162.2 million. What’s interesting is that the single largest liquidation order was for ETHUSDT, worth $11.57 million, and it was registered on the Binance cryptocurrency exchange. Furthermore, a dominating 87% of the total liquidation amount – or $142.4 million – consisted of long positions set by traders. These traders were betting on an upward movement in the cryptocurrency market, but Ethereum (ETH) bore the brunt of these liquidations with a total worth of around $60.5 million.
During this market plunge, Bitcoin (BTC) saw its price decline by over 4% in the last 24 hours. This put the leading cryptocurrency well below the crucial $25,000 level, trading at an average price of $24,856 at the time. This development raises some questions regarding the stability and future growth of digital currencies in an uncertain global economic climate.
While the market may have experienced a setback, it’s essential for investors to remain informed and prepared. On one hand, this crash highlights the inherent volatility and risk associated with trading digital currencies. Some may argue that the market’s unpredictability is what makes it an unsuitable investment option. Conversely, others could see this as an opportunity to enter the market at a relatively lower price point, in the hopes that the market will bounce back, leading to substantial gains.
In any case, it’s crucial for traders and investors to conduct thorough market research before committing to a particular course of action in the cryptocurrency space. This will not only help them stay on top of market trends but also enable them to make well-informed decisions based on their investment appetite and risk tolerance. As always, it’s important to remember that the market fluctuations are often subject to external factors that influence both long-term and short-term directions. Therefore, personal financial loss remains a risk that every investor should be aware of and prepared for.
Source: Coingape
