Bitcoin’s Sudden Drop Triggers Nearly $900 Million Crypto Market Liquidation
The cryptocurrency market is facing huge losses today as the price of Bitcoin (BTC) dropped by almost 7% to $97,905. This sharp drop caused a ripple effect across the market, leading to massive liquidations. Bitcoin’s decline resulted in the elimination of nearly $900 million worth of leveraged positions in the cryptocurrency space.
Massive liquidations in the market
according to Store dataOver 316,000 traders have been liquidated during this price drop, resulting in a total of $881 million in liquidated positions. Long positions took the biggest hit, accounting for $820 million of the total, while short-volume liquidations accounted for $60 million.
The largest liquidation occurred on the HTX switch, with a massive $98.46 million position being liquidated.
Market sentiment shifts to neutral
The Crypto Fear and Greed Index shows a shift in sentiment as the market continues to struggle. index Now sitting at 55indicating a “neutral” outlook. Due to caution in the market, more and more traders are betting on Bitcoin’s recovery through short positions.
Bitcoin’s Key Support Level: $98,000
Bitcoin is currently testing its key Support $98,000it needs to hold up to prevent further decline. If Bitcoin loses this level, it could trigger a deeper correction, erasing recent gains and causing more uncertainty in the market.
Pressure on Bitcoin is building as the Federal Open Market Committee (FOMC) meeting approaches on January 29, adding to tensions.
Interesting thing.
Altcoins are also hard
Not only Bitcoin suffered from Altcoins but also faced huge losses. Ether (ETH) was the most affected, with over $110 million worth of long positions liquidated.
Other major cryptocurrencies, including Solana (Sol), XRP, Dogecoin (Doge), and Chainlink (Link), have seen double-digit drops in value, adding to the overall market volatility.
