In recent days, the crypto market has witnessed substantial changes, with over $550 million liquidated in just 24 hours. This significant loss impacted around 170,000 traders as Bitcoin reached a weekly low, prompting a wave of sell-offs.
According to Coinglass reports, the losses included $118 million in BTC longs, $54 million in ETH longs, and $25 million in Dogecoin positions. This liquidation surge, combined with decreasing market capitalization and trading volume, highlights the anticipated volatility in the crypto trading space.
Bitcoin's market dominance remains strong, accounting for over 56% of the total crypto market capitalization, valued at $3.23 trillion. The highest liquidation was recorded as a $4.67 million BTC/USDT exchange on Binance, emphasizing high-risk stakes in leveraged trading.
Not only Bitcoin but altcoins also suffered significant losses, especially those with smaller market capitalizations, contributing to a $100 million market decline. Despite these setbacks, some analysts view these changes as typical corrections following a substantial 44% rise in Bitcoin since November's start.
The crypto Fear and Greed Index indicates an "Extreme Greed" sentiment at 82, showing optimism in market potential. Ethereum shows resilience despite experiencing position liquidations, while meme-driven Dogecoin also faced repercussions from market corrections.
As more traders revive previously inactive wallets, interest in Bitcoin and altcoins continues to grow, potentially enhancing both market growth and volatility. At $92,801, Bitcoin trails behind its all-time high of $99,750.
Opinions differ on Bitcoin's future; some foresee consolidation before surpassing $100,000, whereas others predict volatility due to leveraged trading. The unpredictable nature of the market remains evident as investors monitor mood and macroeconomic factors.
Despite current bullish conditions, the inherent volatility and risk of significant leverage in the crypto market serve as reminders of its unpredictable dynamics.
