Crypto market today suffered over $1 Billion in liquidation which according to the Crypto Analysts is the “Biggest Liquidation event in the past 3 years.”
Bitcoin, in particular fell more than 15 % of its shares value earlier. This event comes in shock as recently, the approval of exchange-traded funds (ETFs) being merged with the spot prices of bitcoin and ether led to a positive outlook in the realm of cryptocurrency.
Bitcoin fell short of 50,000$ which is the lowest in nearly half a year but is now being valued at 54,313$. Not only Bitcoin, but 30 top -listed Cryptocurrencies have seen this sudden decline in which Ethereum fell short to 2180$ which is the lowest in this year.
XRP fell down 15% while Solana based meme coins also suffered steep corrections as per the Crypto Exchange sites.
Global Economic uncertainty especially the unwinding Yen carry trade which led investors adjust to higher interest rates in Japan, consequently reducing exposure and investment in riskier crypto assets.
Along with bitcoin supply concerns and most importantly, the US political climate with the ongoing Presidential race, created uncertainty in the market which led to this steep market crash. Fear and Greed Index dropped to 26, signaling extreme fear among traders and short-term holders lost over $850 million in the past day, bearing significant losses on their Crypto holdings.