The cryptocurrency market is a market where sharp volatilities occur from time to time. Fast movements bring significant drops and increases. After the drop that started at 02:00 in the evening and reached about $4,000 in BTC, the market began to wonder what was next. The sharp decline in BTC is also reflected in altcoins.
Bitcoin Fell to $40,400
With the decline we mentioned that occurred in the evening, BTC fell to $40,600 and then we see a rapid recovery. The response to the sharp movement in BTC, which reached about $4,000, brought the BTC price to $42,371 at the time of writing.
Sharp movements towards the price led to the liquidation of a position of $97 million focused on short and long in Bitcoin, according to Coinglass data. In Ethereum, the liquidated figure was slightly above $80 million.
Sharp Volatility in Altcoins
The sharp drop in Bitcoin and the subsequent rapid recovery led to a similar process for altcoins. As of writing, Ethereum has fallen to $2,160. With the subsequent reaction purchases, the ETH price also came to $2,150 as of writing.
Looking at the leading cryptocurrencies, XRP is trading at $0.62, while Solana is trading at $70. Cardano (ADA), which has experienced a rise of over 50% in recent days, is trading at $0.56.
With the volatility in the cryptocurrency market, we see that $390 million worth of long and short focused positions have been wiped out in the last 24 hours. Of these positions, $340 million is long focused, while approximately $53 million is made up of short focused positions.
In conclusion, there was a night where a rapid recovery occurred in both Bitcoin and altcoins. The recovery of prices could be an indicator that upward movements may continue in the coming days. On the other hand, there is also a possibility for the price to stay in a range for BTC. This situation can be interpreted as a harbinger of a small increase for altcoins. However, if there is a drop in BTC, this will mean a decline for altcoins, as happened in the movement last night.
