The cryptocurrency market experienced a sharp downturn with bitcoin (BTC) tumbling below the $116,000 threshold and triggering over $140 million in leveraged position liquidations over a 24-hour period. This volatility spike impacted 213,729 traders amid rapidly shifting market conditions.
Bitcoin dropped 2.63% to $115,356, retracting from its recent all-time high of $123,100 recorded on July 14 and causing widespread liquidations totaling $140.06 million. Top altcoins mirrored the decline, with ether (ETH) falling 1.33% to $3,598 and wiping out $104.76 million in long positions, while dogecoin (DOGE) plunged 7% to $0.22, eliminating $26 million in long contracts.
The massive wave of liquidations highlighted significant risks for traders utilizing leverage instruments during periods of extreme market volatility. Despite the correction, the Crypto Fear & Greed Index maintained a ‘Greed’ score of 70, signaling residual market optimism and potential buy-the-dip sentiment among investors.
This event underscores the cryptocurrency market’s inherent volatility and emphasizes the critical importance of disciplined risk management strategies and trader education in navigating sudden price swings.