Market Downturn Amidst Recovery Attempts
Bitcoin's price experienced a significant drop of nearly $6,000 in a matter of hours, falling from over $91,000 to approximately $85,000 on Binance. This sharp decline occurred rapidly, leading to over $650 million in liquidated positions, marking a substantial 390% increase compared to the previous 24-hour period.
The cryptocurrency market had been showing signs of a slow recovery, with Bitcoin having somewhat stabilized around the $91,000 mark. However, this positive momentum was short-lived as bearish forces exerted significant pressure on the market.
Altcoins Suffer Significant Losses
The downturn has not been limited to Bitcoin; altcoins have also experienced considerable losses. As indicated by market heatmaps, the percentage losses for altcoins are, as is often the case, more pronounced than Bitcoin's. For instance, XRP is down by 7.3%, Solana (SOL) by 7%, HYPE by 8.2%, and Stellar Lumens (XLM) by 8.7%. Many other cryptocurrencies have followed a similar downward trend.
Notably, even Zcash (ZEC), which had previously shown resilience, has seen a steep decline of 21.6% over the past 24 hours. This broad market sell-off has impacted a wide range of digital assets.
Total Market Capitalization Declines
The overall cryptocurrency market capitalization has fallen to $3 trillion, according to data from CoinGecko. It is worth noting that there might be slight discrepancies in data reporting, as CoinMarketCap indicates the market capitalization has already dipped below this mark. This contraction reflects the widespread selling pressure across the digital asset space.