The cryptocurrency market took a nosedive in the last 24 hours, with Bitcoin down 5.48% at 96,308.64 dollars. That drop also scrubbed 1.91 trillion dollars off of Bitcoin’s market cap, even as trading volume jumped 28% to 62.75 billion dollars as investors scrambled for position.
Altcoins bore the most damage of the sell-off. Recent high-flyer, Hyperliquid dropped 15.29% to 21.62, giving back much of its recent appreciation. Celestia declined 14.71% to $4.66, with Ethena falling 13.65% and dYdX 13.49%. Meme coin Bonk was not spared and lost 13.29% to $0.00002976.
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The sell-off triggered mass liquidations, that saw over 204,000 traders lose positions worth $626.85 mln. Naturally, the bulk of pain was taken out of long positions; $565.68 mln liquidated as opposed to just $61.22 mln shorts. $17.74 mln of ETHUSDT on Binance was the largest single liquidation.
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Analysts say over-leveraged trades and profit-taking are to blame for the slump, especially in altcoins that have recently surged, such as HYPE. The correction could create avenues for buying, but analysts say the volatility of the market is not yet over, so traders should manage their risks and be cautious.