The cryptocurrency market had a hard 24 hours with more than $1 billion in liquidations after Bitcoin's sharp decline below $100,000. More than 406,000 traders were affected by liquidation, mostly on Bitcoin and Ethereum positions.
Bitcoin and Altcoins Are Crashing
On Jan 19, Bitcoin dropped around 6%, to be specific from around $106,300 to about $99,700. It had created a similar decline on Jan 7, when Bitcoin lost almost the same amount before bottoming at just over $90,000 by Jan 13.
Altcoins were also not saved, with Ethereum seeing the highest liquidation volume at over $207 million, dropping 5% to $3,150. The major altcoins are XRP, Dogecoin, Cardano, Avalanche, Sui, and Stellar, which also saw losses in double digits. But Ethereum has remained inside its price range in recent days.
Market Liquidations and Trump's Memecoin Decline
In the past 24 hours, crypto liquidations have totaled $1.18 billion, of which $921 million are long and $260 million short positions. According to CoinGlass, both Bitcoin and Ethereum were at the lead of liquidation, demonstrating just how powerful both cryptocurrencies are within the market.
Meanwhile, the frenzy surrounding the Donald Trump memecoin quickly dissipated. It hit a fully diluted valuation of over $70 billion before settling more than 40% down in hours on January 20. Melania Trump's newly launched token peaked at $13 billion on January 19 before dropping sharply.
Conclusion
The recent decline is truly indicative of how unpredictable the cryptocurrency market is, considering all the rapid price changes and speculations. Any investor who is dealing with Bitcoin and other major cryptos has to be all the more watchful because every boom and bust they face does affect their confidence in investments.
