The cryptocurrency market witnessed a major drop, with Bitcoin (BTC) leading the decline. According to recent data from CoinGecko, the price of Bitcoin fell to $35,362.52, which is a 4.1% drop in 24 hours.
Bitcoin’s market capitalization now stands at approximately $691 billion, with a 24-hour trading volume of over $24 billion.
This sudden drop in value has caused a substantial destruction of open interest in Bitcoin futures, which amounts to about $600 million, as reported by Daan Crypto Trades on Twitter.
liquidation frenzy
The impact of this price drop has been particularly severe for traders holding long positions. According to data from CoinGlass, in the last 24 hours, total liquidations amounted to $366.27 million, affecting 103,213 traders.
The largest single liquidation order occurred on the OKX exchange with a value of $9.45 million in a BTC-USDT-SWAP.
Long positions were hardest hit by these liquidations and accounted for the majority of losses across several exchanges.
For example, on OKX, 98.55% of the $142.02 million in liquidations were long positions, reflecting the predominantly bullish market sentiment before the decline.
Chilling?
Due to the market overheating, some analysts believe that this correction could have been delayed.
Despite the recent drop, Bitcoin’s performance over the past year shows a gain of 109.40%, with a notable year-to-date increase of 113.25%. This suggests that the market was potentially overheated, warranting a correction.
Unlike the cryptocurrency market, the major stock indices have shown positive movement. Following the release of inflation data showing a decline to 3.2%, US stocks and bonds saw a rise, with the S&P 500 and Nasdaq Composite rising 1.9% and 2.2%, respectively. .
