The cryptocurrency market has seen nearly $ 3 billion in liquidations in the past 24 hours.
This follows the steepest drop in prices observed in this asset class since the start of the last hike.
This rapid price movement continues to highlight the massive volatility of the asset class.
It looks like the bull run euphoria is coming to an end, as the overall market is in the red for the first time in a long time.
Cryptocurrency prices have fallen sharply as the ether has fallen by nearly 20%. Meanwhile, bitcoin has fallen almost 15%, and some altcoins are being hit even harder.
According to Bybt , a crypto derivatives data analysis platform, $ 2.87 billion has been liquidated across the cryptocurrency ecosystem in the past 24 hours. This includes $ 1.77 billion of bitcoin and $ 629.5 million of ether.
The majority of liquidations took place on Binance, then Huobi, and finally BitMEX. The biggest sell-off took place on BitMEX at BTC, where a trader lost the astronomical sum of $ 8.72 million.
Has the price reached its maximum?
Since bitcoin broke its previous price record in 2017, there has been virtually no decline. This is the first decrease of + 15% since the start of the last wave of bull run.
Bitcoin has broken a new high almost every day and has been in almost constant price discovery. In other words, the market was constantly trying to determine a fair value spot price.
As bitcoin has passed double its previous all-time high , a pullback is expected. Many users are unsure whether the asset will continue to fall, find support, or rebound and continue to move higher.
What to expect in the future of crypto
Some particularly conspiratorial retail users claim that “market manipulation” is the cause of the recent price increase. That said, bitcoin is an inherently volatile asset that has just experienced one of the biggest rises ever.
With such rapid growth across the space in such a short period of time, it is only natural to see such price volatility as speculators take profits.
Ethereum is also hit hard. Although it accounts for around 35% of Bitcoin’s total monetary losses, it only has a market cap of around one-fifth.
Cryptocurrency traders with years of experience are well aware that massive volatility across the space is likely to persist until crypto is adopted on a large scale.