Today, the cryptocurrency market has plummeted. I'll explain in detail what's going on.
The market decline reflects a broader decline in traditional markets, affected by rising geopolitical tensions and economic uncertainty. Therefore, while traditional markets were faltering, cryptocurrencies were not left behind.
During afternoon trading in the United States, Bitcoin plummeted below $66,000 after approaching $71,000 a few hours earlier.
As of this writing, Bitcoin has just recovered to $69,934, down 5% in the past 24 hours alone. Ethereum wasn't far behind, with a dramatic 12% drop to $3,100, before losses narrowed to $3,230 at the time of writing.
The recession was more of a free fall than a gentle slide. Futures market data pointed to a brutal session for leveraged traders. He liquidated just over $400 million in leveraged positions in an hour.
Traders on Binance took the brunt of it, liquidating a total of $171 million, while traders on the OKX exchange lost $158 million. What was the total market damage in the last 24 hours? According to Coinglass, 270,993 traders raised a whopping $860 million.
The market decline coincided with a decline in the U.S. stock market in response to new inflation data showing inflation accelerating for the third month in a row. This faster-than-expected consumer price index (CPI) growth dampened remaining optimism about the Federal Reserve's short-term interest rate cuts and dampened hopes that inflation was nearing control. .
Also check out: Coinbase vs SEC: Coinbase requests interlocutory appeal of investment contract ruling
In the midst of this disaster, Bitcoin managed to increase its market power to nearly 56%, reaching the peak of this market cycle. This means that even with the market crash, Bitcoin has somehow found a way to strengthen its position as the king of cryptocurrencies.
Looking ahead, the crypto community is keeping an eye on the halving event scheduled for April 21st. Historical trends and expert opinion, including Arthur Hayes' thoughts, suggest that this event could trigger several more price corrections.
All these factors intertwine to make today's market movements a jigsaw puzzle of investor sentiment, economic indicators, and upcoming major crypto events.
Did you know: Groundbreaking Bitcoin and Ethereum ETF ready to launch in Hong Kong
