The global crypto market has seen a significant downturn, with its market cap dropping to $1.89 trillion, a 12.29 per cent decrease in just one day. Despite this, Bitcoin remains a strong player, maintaining a dominance of 56.56 per cent. Bitcoin also slipped below the $50,000 mark briefly, taking it to its lowest levels since February.
Gracy Chen, CEO of Bitget highlights the sharp declines in major cryptocurrencies over the past 24 hours, with Ethereum down by over 20 per cent and Bitcoin by 11 per cent. The derivatives market experienced significant liquidations, with $827 million, including nearly $720 million in long orders, being wiped out.
Chen also highlighted the global economic uncertainties claiming that recession fears are impacting investor sentiment. Another factor is trading losses in the US and Japan. Additionally, Berkshire Hathaway's large-scale stock sales and Jump Crypto's ETH sell-off. Chen notes that historically, the crypto market often undergoes sharp declines before a bullish drive, reducing long positions and selling pressure for future rises.
