Bitcoin and Ether Experience Sudden Decline
The price of Bitcoin (BTC) experienced a sudden decline, falling from $43,357 to as low as $40,659 in just 20 minutes. This marked the largest single-day decline for Bitcoin in over a month. Ether (ETH), the second-largest cryptocurrency, also witnessed a sharp drop, falling more than 8.9% in the same time frame.
Losses Across Other Cryptocurrencies
Other major cryptocurrencies, including Binance Coin (BNB), Ripple (XRP), and Solana (SOL), also posted losses during this period.
Liquidations and Open Interest
The sudden drop caused more than $270 million worth of long positions to be liquidated, according to data from CoinGlass. Additionally, around $1.2 billion in open interest on BTC was wiped out.
Correction After 8 Consecutive Green Weekly Candles
Bitcoin had just closed its eighth consecutive green weekly candle before the decline. This drew attention from traders who were anticipating a correction.
Hot Take: Market Volatility Tests Crypto Investors
The recent sudden decline in Bitcoin and Ether prices highlights the inherent volatility of the cryptocurrency market. As an investor or trader, it is important to be prepared for such price fluctuations and have a risk management strategy in place. While these drops may cause temporary losses, they also present opportunities for those who can navigate the market effectively. Stay informed about market trends and developments to make informed decisions and minimize risks in the crypto space.
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