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Bitcoin’s price was rejected at almost $66,000 yesterday, and the crash has worsened over the past few hours, with the asset dumping below $63,000.
Most altcoins have followed suit, including many of the larger-cap ones, which has increased the total value of liquidations from over-leveraged positions.
Why Is Crypto Down Today?
After a calm weekend in which its price stood at around $64,000, bitcoin experienced minor positive volatility on Monday, jumping past $65,000 and tapping a multi-day peak at over $65,500. Its rather gradual ascent was stopped immediately, though, and the bears resumed control.
There are many possible reasons behind bitcoin’s drop. The ETF outflows continue, with another $68 million withdrawn from the funds on Monday. Many analysts claimed that the strengthening dollar is bad news for $BTC, and the past few days have proven that. Additionally, online FUD has risen following reports that many OG investors have begun disposing of their bitcoin holdings.
US President Donald Trump signed an executive order advancing research and development of quantum computing, which is seen as a major threat to bitcoin and crypto.
Separately, the FUD around Strategy and its STRC shares continues, as many analysts have argued that the company might need to start selling $BTC soon to cover dividends. Additionally, the firm’s $BTC purchases have been smaller lately, while it has focused on rebuilding its USD reserve.
And, as it typically happens, bitcoin’s correction has extended to many altcoins. $ETH has lost the $1,700 support after a 2.5% daily decline, XRP is testing the $1.10 level again after a rejection at $1.15, while SOL has plummeted by nearly 5% and is down to $70.
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Liquidations Rise
Intense volatility in the cryptocurrency markets generally leads to high levels of liquidations, and the past few (and 24) hours are no exception. The total value of wrecked positions in the last hour alone is over $170 million, while the daily chart shows roughly $530 million. Expectedly, longs dominate as $BTC and $ETH lead with $170 million and $96.5 million, respectively.
Almost 120,000 traders have been wiped out in the past day. The single-largest liquidation took place on Aster and was worth over $7 million, according to data from CoinGlass.
