Crypto Carnage: Over $800 Million Wiped Out In Market Plunge
March 16 2024 - 7:00AM
NEWSBTC
The recent market plunge has sent shockwaves through the crypto
industry, resulting in hundreds of millions in dollars being wiped
out in a matter of hours. The price of Bitcoin has retreated
violently to a weekly low of $67,500 after a few days of showing
remarkable advances and setting new all-time highs. The altcoins
have experienced a significant decline as well, resulting in nearly
200,000 traders making liquidations during the last 24 hours. The
weekend brought a tremor to the cryptocurrency market, with a
sudden price correction causing short-term panic and hundreds of
millions in liquidated positions. However, despite the wobble,
analysts are divided on whether this signifies a broader market
shift or a mere blip on the bullish radar. Crypto Long Squeeze
Triggers Liquidations Over a 24-hour period ending Friday, March
15th, the global cryptocurrency market capitalization shed a cool
6%. This triggered a wave of automated liquidations, particularly
for investors holding leveraged long positions – essentially large
bets on rising prices. Related Reading: Bitcoin Miners Brace For
Impact As Difficulty Reaches Unprecedented Levels According to
Coinglass, a crypto data analysis platform, over $800 million worth
of long positions were liquidated across the market. Bitcoin itself
bore the brunt of the selling pressure, dipping as low as $67,000 –
its lowest point in over a week. Liquidation heatmap in the 24-hour
timeframe. Source: Coinglass The pain wasn’t evenly distributed.
Over one third of the liquidations, a total of $660 million, came
from long positions on Bitcoin. Altcoin Bloodbath Follows Bitcoin’s
Lead The tremors weren’t confined to Bitcoin. The correction
spilled over to the altcoin market, with popular tokens like
Cardano, Dogecoin, Shiba Inu, and XRP all experiencing significant
price drops. This, in turn, triggered further liquidations for long
positions held on these altcoins. XRP traders alone saw over $10
million liquidated, with nearly $11 million coming from long
positions. Total crypto market cap is currently at $2.5 trillion.
Chart: TradingView Crypto Market Fights Back: Buying The Dip
Despite the week’s fright, the overall sentiment in the crypto
market remains surprisingly bullish. This is primarily fueled by
the swift buying activity observed at key support levels as prices
dipped. Bitcoin, the world’s most sought-after crypto asset, for
example, has already staged a partial recovery, bouncing back to a
little over $69,000 at the time of writing. Similar rebounds have
been observed across several altcoins, suggesting that investors
might be viewing this as a buying opportunity. Related Reading:
Sell Sign Ignites Speculation: Solana Fate Hangs In The Balance?
This correction can be seen as a healthy market reset after a
strong rally, some analysts say. While some leveraged positions got
burned, the fact that investors are stepping in to buy the dip
indicates continued confidence in the long-term potential of
cryptocurrencies. A Continued Balancing Act The weekend’s events
serve as a microcosm of the ongoing struggle within the crypto
market. On one hand, there’s a growing sense of institutional
adoption and mainstream acceptance, fueling a bullish sentiment. On
the other, the inherent volatility of crypto assets continues to
pose a challenge, with sudden price swings capable of inflicting
significant losses on unsuspecting investors. Featured image from
Pexels, chart from TradingView
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