The cryptocurrency market saw a correction of approximately 10% in the last 24 hours as Bitcoin dropped below $43,000 for the first time since February 2021. The latest correction in cryptocurrency assets liquidated more than $2.4 billion worth of trading positions including $2 billion worth of long positions and $400 million worth of short positions.
According to the latest data published by a crypto analytics platform, Bybt.com, approximately 304,000 cryptocurrency traders liquidated their positions within a single day amid massive volatility. The largest Bitcoin liquidation order happened on the cryptocurrency exchange, Huobi with a total value of $90 million.
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The overall market cap of digital currencies dropped below $2 trillion on Monday. Bitcoin, Ethereum and Binance Coin were down by double digits after the recent tweets by Elon Musk. The CEO of Tesla termed Bitcoin a centralized cryptocurrency on Sunday. BTC dropped heavily following his statement and lost more than $100 billion of its market cap within few hours.
“Everyone has been watching BTC fall, crashing 35% from all-time highs, just within a month. Remember gravity and volatility? They exist. Some of the new cryptocurrency market entrants are about to have their first taste of risk management. When combining fundamentals such as positive net inflows of BTC to exchanges, mixed with the previously mentioned technicals of lower high and lower low, we can ignore what large egos and influencers say, and see that a pullback was bound to happen,” Justin Chuh, Senior Trader at Wave Financial said.
Cryptocurrency Market Recovery
The overall market cap of cryptocurrency assets has recovered slightly after the recent crash. Digital currencies added nearly $100 billion in the last few hours as Bitcoin jumped above $45,000. Ethereum, the world’s second-most valuable digital currency regained the market cap of $400 billion after ETH touched $3,500. As of writing, Binance Coin (BNB), the world’s third-largest cryptocurrency, is trading above $530 with a market cap of more than $80 billion. Bitcoin’s crypto market dominance is hovering around 40%.