Crypto markets witnessed a surge in liquidations of leveraged positions, exceeding $200 million within the past hour, amidst sharp losses across assets. The total liquidated amount in the last 24 hours stands at $885 million, triggering mixed reactions from market participants.
CoinGlass data highlights today’s steep decline as the largest derivative exit this month, prompting panic selling among traders on social media platforms. While the crypto market is predominantly in the red, some view this as a buying opportunity, advocating the “buy the dip” strategy.
The sudden reversal in trend is attributed to macroeconomic factors and escalating geopolitical tensions in the Middle East, particularly news of a potential Iran attack on Northern Israel. This tension spilled over into traditional assets, triggering liquidations, despite gold’s surge.
Despite the downturn, crypto bulls anticipate a bounce-back post-liquidation, emphasizing the temporary nature of volatility. Pro-crypto commentators reassure investors, citing Bitcoin’s long-term value proposition and resilience to market fluctuations.
The broader cryptocurrency market reflects a 7% decline in the last 24 hours, with Bitcoin plunging by 5.21%, erasing weekly gains. Altcoins also experienced significant outflows, with Ethereum, Solana, Ripple, Cardano, and Avalanche posting losses ranging from 8.65% to 17%.
