Cryptocurrency Holdings Suffer Significant Losses as Bitcoin, Ethereum, and Dogecoin Plummet
Dive into SCENE: Crypto Crash Chaos
The crypto market is reeling today as prices plummet, forcing a massive $328 million worth of positions to be liquidated in just an hour. This overwhelming sell-off, largely dominated by long bets, paints a bleak picture for the optimistic investors who placed their bets on rising prices.
According to data from CoinGlass, this brutal liquidation streak has also led to a stunning $713 million worth of crypto positions being vaporized over the past day, with a whopping $650 million of those being long positions—bets that the price of a specific asset would escalate.
Leading the day's carnage is Bitcoin, which has seen $317 million worth of positions liquidated, with $306 million of that being long bets. The Bitcoin price is currently hovering below $106,200 after a 3% drop over the last day. Although it's still up by about 5% over the last week, its price has been on a downward spiral since it topped out above $110,000 on Tuesday. Compared to its all-time high mark of $111,814 set in May, Bitcoin remains about 5% down.
Ethereum is the second most affected asset, with a total of $151 million liquidated. Despite this, Ethereum has taken an even harder hit on the day, with its price dropping more than 6% to $2,650. While this dip leaves Ethereum up 9% over the past seven days, its earlier-week spike has since been erased.
Solana, XRP, and Dogecoin trail behind as the next three largest victims of liquidations, all posting red numbers for the day. Solana is down over 6% to $152.80, XRP has dipped over 4% to $2.20, and Dogecoin has fallen 7% to $0.181—making it the biggest loser in the top 10 coins during this period.
It seems that both Bitcoin and Ethereum encountered profit-taking after Wednesday's CPI report, indicating that investors were selling the news of slowly decreasing inflation in May. In contrast, altcoins such as Dogecoin and Solana were already dropping earlier in the day, though their losses have since accelerated.
Overall, the broader crypto market is down approximately 5% over the last 24 hours. Factors such as sharp price declines, high leverage, market feedback loops, cross-market correlations, and institutional activity all play a crucial role in triggering these mass liquidation events. While there may be variations in exact amounts and timeframes based on the source and market event, these core factors provide insights into how such large-scale liquidations can occur.
- The ongoing sell-off in the crypto market has led to the liquidation of a massive $328 million worth of Bitcoin (BTC) positions in an hour, with $306 million being long bets on a rising price.
- Ethereum (ETH) has also suffered significant losses, with $151 million worth of positions being liquidated, and its price falling more than 6% to $2,650.
- In the crypto market, investors are increasingly turning their attention to Initial Coin Offerings (ICOs) as a potential avenue for investing in the broader finance and technology sector.
- While the overall crypto market is down approximately 5% over the last 24 hours, altcoins such as Dogecoin (DOGE) and Solana (SOL) have seen bigger losses due to profit-taking and other market factors.
- The technology underlying the crypto market continues to evolve, with innovations such as smart contracts and decentralized finance (DeFi) providing new opportunities for investing in the crypto market beyond Bitcoin and Ethereum.
