Early Tuesday morning, the market is in red as Bitcoin is down 7% and Ethereum is lagging 10%.
Global crypto market capitalization has shrunk by 8% since yesterday, falling below $2.5 trillion after coming within 5% of the all-time high the crypto market last saw in early November 2021 last week. .
At the time of writing, the price of Bitcoin was $63,142.39, after briefly falling below $63,000, according to data from CoinGecko. Things are changing rapidly for Bitcoin traders. BTC hit a new all-time high last week, inching past $73,000.
Ethereum is in an even worse situation than Bitcoin.
Early Tuesday morning, the price of Ethereum was $3,230.05. This is down 10% from yesterday and 20% down from this time last week, when the Ethereum community was gearing up for his Dencun upgrade to go live on mainnet.
According to Coinglass, the significant decline in the prices of Bitcoin and Ethereum means that many long positions opened by optimistic traders have been liquidated. In the past day, he has liquidated $500 million worth of long positions and his $100 million worth of short positions across digital asset contracts.
When a trader opens a long position, he or she is essentially betting that the price of an asset will rise by a certain date. The ideal situation for investors is to sell assets only if they can make some profit and want to make a profit. However, in extreme cases, the price of an asset has fallen so much that an exchange or brokerage firm may force a trader to liquidate.
Meanwhile, many of the meme coins that were gaining traction a few weeks ago have suffered even bigger losses. This is usually the case with meme coins. Memes can be particularly volatile when the market's largest assets, such as Bitcoin and Ethereum, experience price fluctuations, which can result in significant gains and losses.
Solana meme coins Dogwifhat (WIF) and Bonk (BONK) have fallen 22% and 19%, respectively, over the past day. And Floki Inu (FLOKI), one of the competitors of the Ethereum-based Shiba Inu-themed meme coin, is down 20% since yesterday.
Even Solana DEX Jupiter, which promised to help Slerf pre-sale buyers who just lost $10 million yesterday, has seen its JUP token drop 16% since this point on Monday.
