- The global crypto market fell by nearly 13% during a sharp one-day crash on Monday.
- Bitcoin dropped to almost 75,000 dollars and triggered over 392 million dollars in long position liquidations.
- Ethereum declined by 20 percent to 1,449 dollars and saw nearly $328 million in losses for long traders.
A sharp market downturn swept through global assets on Monday, triggering massive selloffs across both crypto and traditional equities. The global crypto market shed nearly 13% in a single day as panic gripped investors. Given high leverage and a strong bullish bias among traders, the number of forced liquidations reached far higher levels.
Bitcoin was the leader of the crash. It dropped to almost $75,000 before exchanges liquidated hundreds of millions of long Ethereum futures contracts. Extreme volatility resulted in over $392 million worth of BTC long positions being wiped out by the rapid fall. Positions were defaulted due to leveraged traders losing control of their margin requirements.
CoinGlass reported over $1.36 billion in total crypto liquidations within 24 hours, with long positions accounting for $1.2 billion. The impact was compounded by the fact that nearly 86% of futures traders had ventured a bet on rising prices. The liquidation wave sent Bitcoin into a deeper correction and opened the market up for more volatility.
Ethereum Suffers Heavy Losses as Panic Spreads
The crash also created a difficult situation for the Ethereum price, which faced such extreme selling pressure that it lost 20% and dropped to $1,449. Positions unwound rapidly across major exchanges, leaving long traders out nearly $328 million. It sent broader DeFi tokens tied to Ethereum’s ecosystem sliding in lockstep.
The Ethereum correction resulted from a widespread shakeout in the crypto market amid worsening global conditions. In minutes, leveraged positions collapsed, and market makers had to adjust spreads and liquidity strategies. This caused the ETH price to fall freely due to the lack of strong buying support.
The liquidation period witnessed huge volume as Ethereum volumes increased significantly on exchanges. The further downward momentum came when large positions were automatically closed. Ether failed to hold the key support levels, weakening the overall sentiment on the market.
Solana Chainlink Tumble in Crypto Market Meltdown
On the downside, Solana and Chainlink plunged about 20% in the past 24 hours. Chainlink was another market that saw similar forced selloffs as other altcoins. Staggering Solana liquidations saw north of $60 million liquidated. The price drops were intensified by high leverage and thin order books.
Amid investor confidence and risk assets evaporating across the board, altcoins took a hit following Bitcoin and Ethereum’s drop. The market correction was associated with most mid-cap and low-cap tokens dropping between 10% and 20%. Frenzied selling wiped Friday’s gains off the table and sent prices downward through key technical levels.
In response to the extreme volatility, some exchanges had increased margin requirements, and others had temporarily disabled derivatives trading. With that, however, automated liquidations kept sweeping through the altcoin space. Solana and Chainlink’s sharp corrections reflect heightened risk sensitivity across the crypto market.
