0
0
The Recent Crypto Market Dip
Major cryptocurrencies such as Bitcoin and Ethereum have experienced a significant drop in value recently, leading to the liquidation of over $200 million in long positions. According to CoinGecko, the price of Bitcoin has fallen by over 3% in the past 24 hours, now trading at just under $68,008 per coin. This is a noticeable decline from its March all-time high price of $73,737.
Ethereum has also taken a hit, with its price dropping by 5% in the same 24-hour period. The coin is currently trading at $3,413, reflecting the overall bearish sentiment in the market. Even cryptocurrencies like Solana and Toncoin have suffered losses, with Solana dropping nearly 7% and Toncoin plummeting over 7% to $6.65 after showing promising performance earlier in the week.
Liquidation of Long Positions
As the crypto market takes a downward turn, traders who had taken long positions betting on the prices of these major cryptocurrencies rising have seen their positions liquidated. CoinGlass data reveals that over $200 million in positions were liquidated in just one hour, with the total for the day nearing $359 million.
Longs are derivative contracts that allow investors to speculate on the price of an asset increasing. When a long position is liquidated, it signifies that the trader’s prediction was incorrect, resulting in the closure of their position.
It is essential for traders and investors to stay informed about market trends and make informed decisions based on reliable sources. As the crypto market remains volatile, it is crucial to exercise caution and conduct thorough research before making any investment decisions.
Image/Photo credit: source url
