The cryptocurrency market is going through a difficult period, traders being faced with heavy losses, because nearly a billion dollars in liquidation have reached the market. Meanwhile, the overall market capitalization of cryptography is down to 2.62 billions of dollars, the bitcoin suffering the most loss. This sudden crash sparked a massive fear in the cryptography industry, pushing fear and greed Index at 17signaling an extreme fear.
Crypto Market Wippes nearly $ 1 billion in liquidation
Recent data from Correglass reveal that About 320,374 traders have been liquidated in recent 24 hours, total losses reaching $ 907.7 million. The greatest number of losses has undergone the longest traders, who were betting on the prices to increase, suffered the most, losing $ 72 million.
However, short traders, who expected prices to drop, were not without security, with losses totaling $ 179 million. However, the largest single liquidation order occurred on the appeal, where a BTC / USD trade worth $ 5.26 million disappeared in an instant.
Meanwhile, Bitcoin (BTC) has taken the greatest success, with $ 318.2 million in aneratic positions. From this, $ 235 million came from traders who expected prices to increase, while $ 82.6 million came from uncovered sellers.
Key reasons of market decline
One of the main reasons is fears of a recession. In a recent interview with Fox News, American president Donald Trump spoke of an economic “transition period”, which makes investors uncomfortable for what awaits us.
Another large factor is the massive Bitcoin transfers of MT. Gox. The deceased exchange Recently moved 11,834 BTC worth $ 931.1 million, followed by 332 other BTCs worth $ 26.6 million. This raised greater pressure on the market.
Finally, a large number of Ethereum whales saw 7,000 ETH deposited worth $ 12.9 million in Kraken, while another moved 21,000 ETH in Binance, reporting possible sales.
Bitcoin and Ethereum in difficulty
Bitcoin is currently negotiating around $ 81,632 and is close to its key support at $ 78,000, which raises concerns among investors. Meanwhile, Arthur Hayes, co-founder of Bitmex, warned that Bitcoin could potentially drop, testing levels between $ 70,000 and $ 75,000, adding more uncertainty to the market.
Ethereum is not better, because its price has dropped 8.4% in the last 24 hours, now negotiating $ 1,915 the lowest level since the end of 2023.