$300 Billion Crypto Market Correction Increases Large Liquidations

The crypto market saw a major dip on Tuesday after Bitcoin, Ethereum and Binance Coin dropped heavily in the market. Within the last 24 hours, the overall market cap of digital assets lost nearly 10% of its value.

The crypto market cap dropped from $2.9 trillion to almost $2.6 trillion in the last 24 hours. Despite the recent decline, the market cap of digital currencies is still up by approximately 250% since the start of 2021.

The recent $300 billion crypto market correction triggered significant liquidations. According to Coinglass, $510 million worth of long crypto trading positions got liquidated within the last 24 hours. Bitcoin alone accounted for the liquidation of more than $190 million worth of long trading positions.

“The dip down to $60.6k is the lowest Bitcoin has been valued in nine days. The -7% slide in the past 24 hours has been met with rising interest from traders to buy the dip. Typically, a bit of crowd fear will be necessary to have prices fully rebound,” Santiment commented on the latest crypto dip.

Crypto Sentiment

After a significant bullish rally in the last 8 weeks, the crypto market saw a shift in sentiment on Tuesday. While the long-term growth of digital assets like Bitcoin and Ethereum still looks strong due to improved on-chain data, the short-term correction has increased panic in the market. According to Coinglass, more than 152,000 crypto trading positions were liquidated in the past 24 hours. The biggest liquidation order happened on Bitmex with a total value of $8.46 million.

However, Bitcoin and Ethereum managed to stay above key price levels. BTC held $60,000 while ETH stayed strong above $4,200. “The market is currently consolidating, having held onto the majority of the gains and finding support at this new altitude. This week also saw the activation of the Bitcoin Taproot upgrade, a remarkable achievement for the network, contributors and BTC holders,” Glassnode highlighted in its report.

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