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The leading cryptocurrency, bitcoin (BTC), has plummeted below the $100,000 mark, hitting a low of $97,124 per unit after peaking at an astounding $102,760 per coin.
Hopes for Liquidations as Bitcoin Drops Below $100,000
In the world of virtual currencies, Tuesday was a turbulent day in which the total market capitalization fell by 4.67% to $3.43 trillion.
The price of Bitcoin dropped 4.16% in the last day, reaching a low of $97,124 by 10:45 a.m. Eastern Time. Ethereum, on the other hand, fell 6.75% against the US dollar and ended the day trading at $3,458. Out of the top ten cryptocurrencies, ether was the biggest casualty.
The crypto derivatives markets saw a significant purge as a result of this slump, with holdings worth about $389.08 million disappearing. Specifically, $59.62 million of the $331.22 million in optimistic bets were associated with long positions in Bitcoin.
According to data from coinglass.com, 131,967 dealers had to deal with liquidation in the last day.
FAQ
The drop was due to a combination of factors, including market corrections, high levels of liquidations, and broader concerns over cryptocurrency valuations. Specifically, Bitcoin fell by 4.16%, while Ethereum dropped by 6.75% against the US dollar.
The total market capitalization dropped by 4.67% to $3.43 trillion due to the significant decline in major cryptocurrencies like Bitcoin and Ethereum, as well as widespread liquidations in the crypto derivatives markets.
Liquidation occurs when traders cannot meet the margin requirements for their leveraged positions, causing their assets to be sold off. In this instance, $389.08 million in holdings were liquidated, with $59.62 million linked to long Bitcoin positions.
Among the top ten cryptocurrencies, Ethereum experienced the steepest decline, dropping 6.75% to end the day trading at $3,458.
This drop serves as a reminder of the volatility inherent in cryptocurrency markets. It highlights the risks of high leverage in trading and the potential for rapid market corrections. Investors should remain cautious and diversify their portfolios to manage risk.
