In the past 24 hours, significant volatility in the cryptocurrency market has led to substantial losses. Over $840 million in liquidations occurred in long positions for leading assets like Bitcoin $80,231 and Ether. Investors had turned to leveraged trades in hopes of a price rebound, but when the downturn accelerated unexpectedly, millions of dollars in positions evaporated.
Massive Liquidation Wave Strikes Traders
According to CoinGlass data, Bitcoin’s price fell below $77,000, while Ether dropped nearly 15% to around $1,500. This decline resulted in the rapid liquidation of positions held by investors anticipating a market rally. Bitcoin alone saw $322 million in liquidated positions, with approximately $290 million liquidated in Ether trades. Popular altcoins like XRP, Solana $114, and Dogecoin
$0.156272 also faced double-digit losses.
The closing of $400 million in alternative token positions indicates a high leverage ratio in the market. Most investors had taken on high-risk positions, expecting continued price increases. However, as the decline intensified, margin levels were breached, leading to inevitable cascade liquidations.
Market Sentiment Shifts, Strategies Reassessed
Investors are now closely monitoring developments not only in the cryptocurrency market but also in global financial trends. Uncertainty in the U.S. markets and a 5% drop in stock futures are weakening risk appetites. Hedge fund manager Bill Ackman’s call for an immediate slowdown in economic policies has further heightened global risk perceptions.
These developments have prompted cryptocurrency investors to adopt more cautious positions against short-term fluctuations. The losses seen in mid-cap tokens, ranging from 10% to 20%, reflect the widespread selling pressure across the market. Liquidations are viewed not only as position closures but also as a decisive factor in market direction.
The market is currently attempting to find a balance between investor expectations and a cautious approach. Volatility is expected to continue in the coming days. Consequently, analysts suggest that investors reassess their strategies and closely monitor short-term price movements.