The cryptocurrency market suffered a sharp decline, wiping out over $100 billion in total market capitalization within hours. Liquidations across major assets like Bitcoin, Ethereum, XRP, and others exceeded $700 million in the past 24 hours, according to data from CoinGape.
Bitcoin Breaks Below Key Support
Bitcoin's price fell below the critical 200-week moving average (200-WMA) at $62,000, a level that has historically acted as strong support during bear markets. The drop triggered cascading liquidations, with BTC leading the selloff alongside ETH, XRP, SOL, HYPE, ZEC, and SPCX. Analysts warn that further declines could accelerate if buyers fail to defend this zone.
Altcoins Hit Hard as Leverage Unwinds
Ethereum and XRP saw double-digit percentage losses, while smaller-cap tokens like HYPE and ZEC experienced even steeper drops. The liquidation wave was fueled by high leverage in the derivatives market, with long positions bearing the brunt. Market observers note that the selloff appears broad-based, with no single catalyst, though concerns over inflation and Federal Reserve policy continue to weigh on risk assets.
Outlook Remains Uncertain
Traders are watching for a potential bounce near the $60,000 level for Bitcoin, but sentiment remains fragile. The rapid loss of value has reignited fears of a deeper correction, especially if macroeconomic conditions deteriorate further. For now, the crypto market is in a wait-and-see mode as it digests the largest single-day liquidation event in months.