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The broader crypto market is experiencing another massive sell-off that has triggered an unexpectedly high record in total liquidations. Per data from CoinGlass, the combined crypto market liquidations have jumped to $849 million as the total capitalization of all digital currencies fell 6.65% to $3.37 trillion.
Crypto liquidation breakdown
Sell-offs on the market are not unusual and mostly follow the extensive drop in the price of Bitcoin ($BTC). At the time of writing, the top coin has fallen by 5.81%, picking up a 24-hour liquidation of $259.21 million. Long traders were most stunned as their bet failed to materialize, losing $247.48 million overnight.
Altcoins were not spared from the sell-offs, with Ethereum (ETH), Solana (SOL), $XRP and Dogecoin (DOGE) in the spotlight.
While Ethereum saw a total liquidation of $109.79 million, Solana, $XRP and Dogecoin saw $38.02 million, $33.29 million and $24.38 million, respectively. These recorded sell-offs are not uncommon in the industry, as the market capitulates when the level of exposure reaches a record high.
With the market looking to recover, the focus will remain on Bitcoin and the $100,000 level. If bulls can again secure this resistance level, the optimism to press for a new high may return.
Growth catalyst to hang onto
At the moment, top market analysts have projected that a major correction is coming for Bitcoin. Among the experts emphasizing this shift is Arthur Hayes, BitMEX cofounder and former CEO.
However, amid the bearish projection, $BTC remains the reference point for the entire industry. The network fundamentals and demand source provide a crucial anchor for long-term growth.
Since the halving, the daily average demand from the spot Bitcoin ETF market still far outpaces $BTC emissions. Key proponents like Samson Mow believe this imbalance will help make Bitcoin’s price parabolic.