Cryptocurrency Market Tumbles: Liquidations Exceed $2.5 Billion Amid Bitcoin, Ethereum Decline
The cryptocurrency market is experiencing a significant downturn, as major assets such as Bitcoin and Ethereum have seen substantial price drops. Liquidations have surged, exceeding $2.5 billion, highlighting the ongoing volatility in this sector.
Market Overview: Cryptocurrency Prices on a Downward Trend
On Saturday, Bitcoin was valued at approximately $77,195, reflecting an 8% decrease over the past 24 hours. This rate marks the lowest Bitcoin price seen in nine months, pushing its weekly decline to over 13%. Since reaching its peak of over $126,000 in October, Bitcoin has lost nearly 39% of its value.
Ethereum’s Significant Losses
Ethereum has faced even steeper losses. The cryptocurrency dropped 13% in a single day, bringing its current price to around $2,362. In total, Ethereum is down 20% for the week, suffering a staggering 52% decline since peaking just shy of $5,000 in August.
Other Major Altcoins Affected
- XRP decreased by 10%, now priced at $1.58.
- Solana fell 14%, currently at $101.
- Dogecoin dropped by 13%, trading at $0.101.
Overall, the cryptocurrency market has depreciated by 7.5% in the last 24 hours, showcasing widespread losses among various altcoins.
Liquidations Soar Amid Market Turmoil
Futures traders faced heavy losses, with CoinGlass reporting $2.53 billion in liquidations for the day. Notably, $2.41 billion of this total came from long positions, which are bets anticipating an increase in asset prices. Ethereum positions accounted for nearly half of these liquidations, totaling $1.14 billion, while Bitcoin saw $765 million in liquidated positions.
Market Sentiment Shifts Towards Bearish Outlook
Traders on Myriad, associated with Dastan, have turned bearish on Bitcoin. They currently estimate a nearly 65% chance that Bitcoin will drop to $69,000 before recovering to $100,000. This outlook has increased by 22% in just a day, indicating growing unease among investors.
Factors Contributing to the Decline
The recent market plunge follows a week filled with volatility, amplified by several external factors. These include fears surrounding a potential U.S. government shutdown, which began as a partial shutdown on Saturday, and concerns over a possible collapse in AI investment bubbles.
- Approximately $1.5 billion left U.S. spot Bitcoin ETFs last week.
- Ethereum ETFs experienced outflows of $327 million during the same period.
As investors shift their focus away from riskier assets, precious metals like gold and silver briefly reached new all-time highs this week. However, they also faced sharp declines on Friday, with silver plummeting over 31% in U.S. trading.
As the cryptocurrency market navigates these turbulent waters, it is clear that both traders and investors are exercising caution in the face of uncertainty.
