The market has faced massive crypto liquidations in the past 24 hours as asset prices plummet. On-chain data shows that over $200 million in leveraged cryptocurrency positions have been liquidated in the past hour.
This brings the total for the past 24 hours to $885 million, with mixed reactions from bulls and bears in the market. Today’s selloff marks the highest derivatives exit this month, according to CoinGlass data.
The selling wiped out gains recorded this month, sending traders across the social media space into a panic.of virtual currency chart Although it is currently in the red zone, some users believe there is a buying opportunity with the tagline “buy on the edge”. The liquidation comes as bulls predict higher prices for market leader Bitcoin (BTC) on the back of capital inflows and future Bitcoin highs. cut in half event.
what happened?
The sudden trend reversal is due to macroeconomic factors and geopolitical tensions in the Middle East. In the final hour, news broke that Iran could attack northern Israel, further escalating tensions in the region.
This impact on the crypto market causing liquidations was triggered in traditional assets, although assets such as gold soared. Despite the trend, Cryptocurrency bulls It said the post-liquidation period could trigger further buying in the market. Pro-crypto commentator @ZachDWest pointed out that crypto liquidations are temporary due to high volatility.
“Volatility is temporary and doesn't need to upset you. Years from now, the value of #Bitcoin sats will slowly increase day by day. The value of every seat you save increases as you get older. Exponential. Predictable. perfection. Bitcoin is a true stablecoin. Zoom out. “
Asset prices trigger cryptocurrency liquidation
The broader cryptocurrency market has fallen 7% in the past 24 hours following a massive outflow of digital assets. Bitcoin plunged 5.21% today, erasing the weekly gains recorded by the market. Altcoins also saw significant outflows, with losses on some assets reaching 17%.
Ethereum (ETH), Solana (SOL), and Ripple (XRP) recorded losses of 8.65%, 14.49%, and 12.4%, respectively, in the past 24 hours. Cardano (ADA) and Avalanche (AVAX) are both down 17%, hitting significant market lows.
Also read: Will El Salvador change its Bitcoin laws due to IMF's $1.4 billion loan?
