Summary
TLDR: Crypto market experiences significant downturn with $864.24 million in liquidations. Bitcoin leads the correction, falling to a weekly low. Other cryptocurrencies like Solana and Dogecoin also see steep declines. The downturn is primarily due to liquidations of bullish bets on crypto. Despite this, Bitcoin remains substantially higher for the year.
Key Points
1. In a stunning reversal of fortune, the crypto market saw a significant downturn, culminating in a whopping $864.24 million worth of liquidations.
2. Bitcoin led the correction, falling 7% to a weekly low of $65,214. This downturn marks its lowest valuation since April 5. The ripple effects resonated across the board. Even smaller cryptocurrencies like Solana and Dogecoin experienced steeper declines of around 18% and 19%, respectively.
3. The downturn primarily stems from the liquidations of bullish bets on crypto. In the past 24 hours alone, data from Coinglass indicates that approximately $775.40 million was cleared from long positions in derivatives markets. Short positions were not spared either, with around $89.89 million being liquidated.