Why is the crypto market down today? Liquidations near $600M, and bulls take a rest
The post Why is the crypto market down today? Liquidations near $600M, and bulls take a rest appeared on BitcoinEthereumNews.com.
Over the last 24 hours, crypto market liquidations have reportedly surpassed $590 million, coupled with an increased number of crypto market positions. The surge in liquidations follows South Korea’s President’s decision to enact martial law in the country, which caused heightened activity in crypto exchanges. MN Consultancy founder and crypto analyst Michael van de Poppe has cautioned crypto investors of a pending market flash crash after weeks of bull run that saw digital currencies surge in prices. In an X post, van de Poppe stated that market corrections might happen and that they would lead to a brief market crash. He urged crypto enthusiasts not to “panic” and called the scenario a “blessing.” Crypto market is due for a flash crash. Source: X (@cryptomichNL) Crypto flash crashes are significant declines in crypto prices that usually take place within a short period. These drops cause mass liquidations that often wipe out billions in market value, leading to widespread panic selling and emotionally driven trading. The crash historically precedes a gradual recovery as the market corrects itself while seeking a new equilibrium price. BTC, XRP lead market liquidation volumes The crypto market has experienced a downturn in the past 24 hours, with approximately $590.6 million in liquidations following South Korean President Yoon Suk-yeol’s now-reversed declaration of martial law. According to a CoinGlass report, $87 million in Bitcoin (BTC) and $75.90 million in Ripple (XRP) positions were liquidated during this period. On-chain data shows that in the past 24 hours, 207,871 traders were liquidated. The largest single liquidation order happened on OKX – BTC-USDT-SWAP value of $15.09M Bitcoin, Ether, and XRP all saw significant price drops following Tuesday’s political unrest in South Korea. This trend is not new. In 2022, the market bled following Russia’s invasion of Ukraine. According to CoinMarketCap data, Bitcoin…
Filed under: News - @ December 4, 2024 11:25 am