Crypto exchanges show turbulence: Market cap hits two-month low
Crypto exchanges show turbulence: Market cap hits two-month low
Cryptocurrency markets experienced significant turmoil as liquidations surged, coinciding with a sharp drop in market capitalization to a two-month low.
According to research by crypto.news, the total amount of cryptocurrency liquidations more than doubled within 24 hours, reaching $265 million, or 114%.
This spike in liquidations came as the global crypto market cap dropped by 3.4% (CoinGecko), settling at $2.29 trillion, a level not seen since early May. The liquidation data (CoinGlass), showed that $236 million of these liquidations were long positions, highlighting a broader market downturn.
Bitcoin (BTC) led the liquidation tally with over $67 million, briefly dipping below $58,000. Ethereum (ETH) followed closely, with $63.6 million in liquidations, reflecting a 4.4% price drop. This downturn has reignited fear, uncertainty, and doubt (FUD) among investors, exacerbating market volatility.
Binance, the largest cryptocurrency exchange by trading volume, saw the highest liquidation volume at $112 million, accounting for 42% of the total. OKX ranked second with $87 million in liquidations. These figures underscore the widespread impact across major trading platforms.
Also, according to CoinGlass, global cryptocurrency open interest fell by 4.7% to $58.5 billion, indicating reduced market activity and investor confidence. This decline in open interest suggests potential for further market instability if the current sentiment persists.
The recent surge in liquidations and market cap decline highlight the inherent volatility and unpredictability of cryptocurrency markets. As investors navigate this turbulent period, the focus will be on how the market stabilizes and what measures exchanges and traders take to mitigate risks.
Continued monitoring of market trends and investor sentiment will be important in the coming weeks.
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