$BTC Market Correction: Over $500B Erased Amidst Leverage Cascade 📉

The crypto market recently experienced a significant liquidation event. In just three days, over $500 billion was wiped from the total market capitalization, while $5 billion in leveraged longs and shorts were forcibly liquidated as volatility intensified.

Bitcoin led the decline, plunging -13% and shedding approximately $265B from its market cap. Ethereum saw an even steeper correction, falling -25% and losing $91B in value.

High-beta majors were also heavily impacted: Solana dropped -23% (erasing $16B), and XRP declined -22% (wiping out $24B). These widespread declines highlight the broad market pressure.

This market movement was primarily driven by leverage, rather than specific news catalysts. Thin liquidity, crowded positioning, and cascading margin calls created a rapid domino effect once initial sell-offs began.

The current phase indicates a broad market deleveraging, a distinct shift from mere capital rotation.

The key question remains: Was this a capitulation event, or does it signal the start of a deeper market reset? 🤔

#Crypto #Bitcoin #Liquidations #MarketAnalysis