This was the most significant decline in the cryptocurrency market in 2023.

Bitcoin experienced a 5%–7% drop, while large caps saw a more substantial decline of 15%–20%. Midcaps were hit the hardest, plummeting by 25%–30%, leading to a massive liquidation event.

Traders who had leveraged their positions by 5 times or more suffered significant losses.

Furthermore, almost all altcoins lost their monthly gains in just one day. This situation bears resemblance to what occurred in June 2023 when the SEC filed a lawsuit against Coinbase and Binance, resulting in a similar market downturn.

However, it is worth noting that historically, these market flushes have presented excellent opportunities to invest in undervalued altcoins. The fear-driven liquidation creates favorable conditions for whales to acquire these assets at a lower price, leading to a subsequent pump in their value.

Therefore, it is advisable to buy during times of fear (FUD) and sell during times of hype (FOMO), rather than the other way around.