The crypto market has once again undergone a turbulent period where most of the significant tokens have experienced red on major timeframes in the short-term domain. The sudden plunge that has caused both institutional investors and retail traders to be concerned on whether the recent gains are fundamental or not.
Over the past 24 hours, the amount of crypto liquidations totaled to $420.29 million out of which $348.26 million was from the long positions and $73.03 million was from short positions. Notably, the last 4 hours alone marked $237.21 million worth of liquidations out of which $217.21 million was from long and only $20 million from short.
The leading digital asset, Bitcoin (BTC) price has lost 1.15% in the last hour, 1.05% in the last 24 hours, and 1.79% in the last 7 days. Although BTC still holds a major dominance (more than 60%), such a situation indicates a greater level of uncertainty, which could be caused by significant correction or a profit taking at local, high levels.
There is also heavy pressure on Ethereum (ETH), causing the wider altcoin correction. The second-largest crypto by market cap has dropped 2.21% in the past hour, 1.34% over the last day, and 3.25% during the week, a sign of uncertainty on the part of investors as the network upgrades and scaling worries take center stage.
Even XRP has not been able to avoid the correction in the market. The token has declined by 2.47% in the last one hour, 2.42% in the last 24 hours and has dropped by 5.70% this week, although the XRP community has tried to regain steam by creating developments in the ecosystem over the recent times.
At the same time, BNB (Binance Coin) has lost 2.27%, 3.65%, and 1.19% over 1 hour, 24 hours and the last 7 days respectively. Even though BNB has demonstrated resilience over the last few months by achieving multiple new ATH, it has failed to hold its ground during such moments of volatility.
One of the sharpest drops was recorded in Solana price where the altcoin lost 3.34% on an hourly basis, 4.13% on a daily basis, and 8.35% over a span of a week as traders abandon high-volatility altcoins. The direction in price shows that more investors were becoming bearish probably as a result of short-term holders selling.
Even meme content like Dogecoin (DOGE) was immune to the ongoing market correction. The DOGE memecoin has lost 4.24% in the last hour, 3.84% since yesterday, and 12.60% in the week, regardless of its hyper active community across the globe.
All in all, the current slump can be a result of a number of factors including low volumes, market uncertainty on international economic policies and market burn-out. The fact that everything has been declining in the bigger tokens over such short periods is a further indicator of the weak sentiment of the market.
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