TL;DR
Bitcoin’s price dropped by nearly $5,000 in minutes, losing its $100,000 level, and is currently trading just above $98,000, with a loss of around 4.3%.
The drop affected many altcoins, with Ethereum, Solana, XRP, and Chainlink experiencing significant losses, some up to 10%.
Over 130,000 leveraged positions were liquidated, totaling $390 million in liquidations, with the largest liquidation on Binance valued at $12 million.
Bitcoin’s price suffered an abrupt drop of nearly $5,000 in just minutes, causing the cryptocurrency to lose its $100,000 level after briefly surpassing it. It is currently trading just above $98,000 and has registered a loss of about 4.3%.
The decline occurred roughly 24 hours after Bitcoin reached the $103,000 level. Its drop triggered a wave that affected a large portion of altcoins, with some experiencing even greater losses.
A Hard Hit for the Altcoins
Among the most affected altcoins are Ethereum (ETH), which fell by 6.9% and struggles to stay close to $3,500. Solana (SOL) plummeted by 6%, with its value around $208. XRP (XRP) is hovering around $2.34 after losing 4.4% of its value. BNB (BNB) lost 3.5% of its price and is trading at around $709 per unit. Chainlink (LINK) was one of the hardest hit, dropping by 10% and hovering around $22 per token, followed by Avalanche (AVAX), which declined by 8% and is now around $41.
Institutions Maintain Bitcoin’s Strength
This situation has had a direct impact on traders using leveraged positions. In the past day, over 130,000 positions were liquidated, resulting in a total liquidation figure of around $390 million. In just the last hour, liquidations exceeded $200 million. The largest liquidation occurred on Binance, valued at $12 million.
Despite this price setback, Bitcoin’s brief rise above $100,000 was driven by strong capital inflows, boosted by institutional purchases such as those from MicroStrategy. This behavior shows that the market is currently experiencing extremely high volatility. Therefore, traders need to take all necessary precautions and gather as much information as possible before proceeding with any trade
