The global digital asset market witnessed a sharp decline on Wednesday as the majority of the crypto took a hit. The fresh drop comes in after the crypto market recorded a bullish rally in anticipation of hitting the $2 trillion market cap. However, the market plunge triggered massive liquidation of long and short bets set by the traders.
Crypto market drops 2%
According to the data, the cumulative market cap dropped by more than 2% in the last 24 hours. It now stands at around $1.90 billion. The DeFi coins market cap also decreased by around 3% in the same period. However, its 24 hour trading volume saw a surge of around 30% as it stood at around $90 billion.
The data provided by Coinglass depicts that a huge amount of crypto liquidation took place as the crypto market declined. More than 103K traders were liquidated in the last 24 hours. The total liquidations involving both long and short positions recorded stood at $300 million. The single largest liquidation orders happened on the crypto exchange Binance of BTC/USDT valued at around $9.7 million.
As we dig in, data shows that $210 million worth of liquidations (71% of the total $300 million) turned out to be long bets placed by traders. While, $89.31 million worth of short positions got liquidated in the last 24 hours.
Data suggests that the crypto traders were hoping for the bullish sentiment backed rally to continue as Bitcoin aims to take on the $53,000 mark. However, BTC failed to keep up the promise.
BTC drops below $52K
Bitcoin price dropped by over 2% in the last 24 hours when it lost the recently reclaimed $52k level. The largest crypto is hovering around this level finding a place to settle. Bitcoin is trading at an average price of $51,219, at the press time. Its 24 hour trading volume is up by 44% to stand at $33 billion.
It is reported that BTC whales went on a selling spree. These whales sold more than 30,000 Bitcoin in the last 48 hours. This mega drop amounted to stand around $1.56 billion.
Ethereum, the biggest altcoin, also faced a price drop after breaching the $3,000 mark. ETH price is still up by 7% in the last 7 days. It is trading at an average price of $2,918, at the press time.
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