The ongoing bullish rally in the digital currency sector has suffered a slight setback as the leading asset, Bitcoin, lost critical support. After soaring to a new all-time high (ATH) and peaking at $111,970.17, Bitcoin has dropped below $109,000, leading to severe liquidation in an unusual market bloodbath.
According to CoinGlass data, a total of $544.62 million liquidations hit the crypto market in the last 24 hours. This has resulted in long-term traders betting on a continued bullish rally, recording losses of $402.25 million.
Bitcoin saw a total of $139.44 million wiped out, with long position traders losing $113.62 million as against the $25.82 million registered by short position traders. The liquidation has impacted market sentiment as trading volume plummeted by a massive 32.19% to $63.95 billion.
As of press time, Bitcoin has lost over $3,000 and is trading at $108,426, representing a 2.63% decline within the time under consideration.
The liquidation among altcoins hit Ethereum (ETH) hardest. The leading altcoin also witnessed a liquidation imbalance, as a total of $137.67 million was wiped out, with long-position traders accounting for $100.74 million.
Similarly, XRP, which has been aiming for the $3 level, registered a massive $10.47 million in long-position liquidation as most investors were betting on increased growth. Short traders lost $910,000, for a total of $11.38 million wiped out from the coin.
Meanwhile, XRP's trading volume declined sharply by $300 million in the last 24 hours. This loss suggests that actual transactional usage on the platform has plummeted significantly due to reduced institutional inflows or a decrease in user activity.
Market observers are watching Bitcoin to see if the asset could lead the crypto market recovery and continue on its upward trajectory. Notably, Bitcoin’s mini-golden cross recorded recently offers hope of a potential price rebound.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.