Bitcoin’s Price Drop Impacts Broader Crypto Market, Altcoins Suffer

Bitcoin’s price movements have historically had a significant impact on the broader crypto market, often sending mixed signals around altcoins. The recent drop in Bitcoin’s price below the $98,000 mark led to a market-wide downturn, majorly affecting small-cap altcoins.

The global crypto market capitalization dropped by 2.3% over the past day, reaching $3.47 trillion. The crypto market value even reached a daily low of $3.38 trillion, wiping over $120 billion, before gaining upward momentum again.

Crypto Liquidations on the Rise

The total crypto liquidations increased by 35%, reaching $494.5 million. Of this tally, $366 million are longs and the remaining $127.8 million are short positions. Small-cap altcoins recorded over $100 million in liquidations in the last 24 hours, surpassing Bitcoin’s $79 million.

The Sandbox is the only major altcoin with dominating short liquidations, despite its price registering a 31% rally over the past day. Bonk also has a slightly bullish liquidation map due to its wild price fluctuations.

Altcoin Liquidations and Price Movements

Ethereum, the leading altcoin, recorded $43 million in liquidations over the past 24 hours, with long positions dominating, as it fell 1.1% to $3,385.

Crypto exchanges Binance, OKX, and Bybit are leading with $216 million, $120 million, and $116 million in liquidations, respectively. The single-largest liquidation, worth $13 million in the BTC/USDT pair, also happened on Binance, the largest cryptocurrency exchange by trading volume.

This market-wide correction is considered normal due to overheated and greedy market conditions.

Another wave of upward momentum for Bitcoin could potentially trigger further bullish sentiment among market participants, impacting altcoins as well.

For more news on the crypto market, stay tuned to Global Crypto News.

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