Cryptocurrency Market Panic: Altcoins Plummet and Bitcoin Dips Below $65,000
The cryptocurrency market has experienced significant turmoil over the past day, with most altcoins seeing a sharp decline of more than 5%. This crash in altcoins has led to substantial liquidations in the cryptocurrency derivatives market.
Data from CoinGlass reveals that nearly $429 million worth of contracts were liquidated in the last 24 hours. The vast majority of these forced liquidations affected long contract holders. Specifically, around $367 million of these liquidations (over 85% of the total) involved traders who were betting on a market uptrend.
Unlike typical scenarios, Bitcoin (BTC) was not the cryptocurrency with the highest liquidation amounts. Instead, Ethereum (ETH) took the lead with approximately $92 million in liquidations. This is likely because Bitcoin’s price remained relatively stable while Ethereum fell by more than 3%.
Following Ethereum, the meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) also saw significant liquidations, with $60 million and $23 million respectively. These altcoins recorded the largest declines among major cryptocurrencies, each dropping by around 11%.
Bitcoin’s price fell below the crucial $65,000 level, currently trading at $64,886, increasing the sense of urgency among cryptocurrency traders. This recent drop is part of a broader downward trend observed over the past week, with Bitcoin losing about 2.4% of its value. In the last 24 hours alone, Bitcoin has decreased by an additional 1%, reflecting growing market anxiety.
Analysts from the blockchain analysis platform Santiment highlight that this ongoing decline marks the largest three-day drop in active Bitcoin wallets since early March. This indicates a significant shift in investor behavior and market sentiment, underscoring the heightened nervousness within the market.
