The market is experiencing a bloodbath as $353 million worth of cryptocurrencies were liquated today. Over the last 24-hours, a total of 183,239 investors got liquidated. The development made Bitcoin plunge near $38,500 and reached its lowest level since August 2021. Bitcoin’s fall dragged the entire crypto market down with it and some even dipped drastically to double digits.
The top cryptocurrencies have now plummeted majorly from their all-time highs of 2021 and wiped away all good profits. Charlie Bilello, the founder of Compound Capital Advisors shared a chilling tweet about the reality of the present market conditions. Here’s how many percentages the top cryptos have fallen from their ATH of 2021:
Terra (LUNA) -27%
Binance (BNB) -40%
Ethereum (ETH) -42%
Bitcoin (BTC) -44%
Avalanche (AVAX) -50%
Solana (SOL) -53%
Crypto. com (CRO) -59%
Polkadot (DOT) -60%
Cardano (ADA) -61%
Chainlink (LINK) -64%
XRP (XRP) -65%
Shiba Inu (SHIB) -69%
Dogecoin (DOGE) -80%
Also, just a few days ago, Mike Novogratz, Bitcoin tycoon and the CEO of Galaxy Digital had issued a bearish warning. “Tens, bonds breaking down. As long as rates go higher we will see pressure on Nasdaq and crypto. 2% seems a logical target for tens,” he had tweeted. Novogratz says that 2% seems like a logical target for him, which means there could be more downside for cryptos.
At that time of his tweet, BTC was already inclining towards a downward position and began displaying bearish sentiments. BTC is now struggling to claw back and is mostly hovering around -6% and dipping further. If the downward trend continues throughout the weekend, the crypto market will find it hard to rise to the present levels.
Several financial analysts were ringing the warning bells of a crash hinting that the next fall will not be easy to swallow.
So What Next For Bitcoin and the Crypto Market?
The year 2022 started off on a bearish note as Bitcoin mostly traded in red and the other day went sideways. No major profits and spike in price were reported for stable coins and the situation was grim.
The liquidation can start a flamingo effect of selloffs in fear of further dips in the market. It is advised to remain cautious during a slump but those who feel the prices are at a discount can make use of the dips.
At the time of publishing, Bitcoin was trading at $39,219.90 and is down -6.5% in the 24-hours day trade.