The crypto market saw a sharp downturn in the last 24 hours with Bitcoin falling to $94,100 for a little while before partially recovering to $97,800. The collapse led to $1.5 billion in liquidations impacting more than 514,000 traders, Coinglass statistics show. The worst performers were the longs, amounting to $1.38 billion, whereas short positions came to about $136.7 million.
Large market cryptocurrencies did not pass off in the sell-offs either. Ethereum went sub $3,800 and experienced an 8% loss of its value. Ripple is down 11%, while Dogecoin lost 10% and Cardano at 13%. Capitalization was cut to 7.5% after revealing losses in all pockets.
The sell-off comes immediately after Bitcoin reached an all-time high of $103,679 on December 4 after the optimism surrounding Donald Trump’s election as the 47th President of the United States. Even though it has surpassed the $100,000 mark, the digital currency has failed to maintain the positive momentum as its volatility has increased.
Experts said several factors have fueled the latest sell-off, major triggers among them being significant Bitcoin transfers from Bhutan and Google’s launch of its “Willow” quantum computing chip. The news has once again revived fears about the long-term risks quantum technology could pose to blockchain security. Still, analysts point out that the near-term risk is still minimal.
Monday has witnessed the most liquidated event since December 2021, where $1.7 billion in leveraged positions was liquidated. The relief of Bitcoin’s resurgence to $97,800 hasn’t changed much, though. The altcoins are under a lot of pressure, and there have been double-digit percentage losses on most assets.
It is in this light that the volatility remains short-term unpredictable and thus the risks involved with highly leveraged positions are at risk.
To Read More: Finance