The whole cryptocurrency market took a downturn on Sunday evening, primarily driven by a significant drop in the largest digital asset.
Bitcoin’s price remained stable around $115,000 throughout the day, showing minimal fluctuations, but suddenly fell to its lowest point since July 10.
It’s worth noting that the leading cryptocurrency surged on Friday following a somewhat optimistic address by Fed Chair Jerome Powell regarding potential interest rate cuts. The asset jumped from below $112,000, which was a local low at that time, to over $117,000 within just an hour.
Nonetheless, that rally was short-lived, and BTC quickly reverted to around $115,000, where it remained for most of the weekend. Just under an hour ago, however, the bears emerged unexpectedly, driving BTC down to a six-week low of $110,600 (on most exchanges).
Bitcoin has since recovered two thousand dollars but still trades below $113,000. This decline has negatively impacted most altcoins, including ETH, which had been performing strongly.
In fact, the second-largest cryptocurrency had recently reached a new all-time high of nearly $5,000. As the community anticipated a breakthrough above this level, ETH plummeted to nearly $4,700 before bouncing back to around $4,800 at the time of writing.
Many altcoins displayed similar volatile price movements in the past hour, adversely impacting over-leveraged traders. Data from CoinGlass indicates that hourly liquidations have surged to over $300 million, with longs accounting for roughly 90% of the total.
On a daily scale, the wrecked positions are almost double that amount, with over 130,000 traders liquidated. The largest single liquidation occurred on OKX, exceeding $12 million in value.
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