Crypto Market Crashes. Bloody Monday!

Crypto Market Crashes. Bloody Monday! As the Asian trading day got underway, major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), experienced significant losses and volatility, signaling a volatile start to the week.

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The leading cryptocurrency, Bitcoin, fell as much as 5% in a 24-hour period, briefly dipping below $41,000, according to data. Bitcoin’s price erased nearly a week’s worth of gains in 20 minutes, dropping from $43,357 to $40,659, before stabilizing around $42,000.

Ethereum, the second-largest cryptocurrency by market capitalization, also suffered a sharp decline of 8.9% during the same time period. Other major altcoins, including Binance Coin (BNB), Ripple (XRP), and Solana (SOL), also saw losses.

The rapid market movement led to significant liquidations. Over $335 million in liquidations occurred in the past 12 hours, with $300 million in long positions being wiped out. This included over $89 million in Bitcoin positions and $74 million in Ether liquidations.

Crypto Market Crashes

On-chain analyst Willy Woo pointed to a $39,700 gap on the CME, signaling a possible correction in Bitcoin prices. The Bitcoin CME Gap, which marks gaps left behind by price jumps on the Chicago Mercantile Exchange and later filled, suggests that the price could return to this level.

This volatility comes after Bitcoin surged by more than 12% in the past 30 days, closing its eighth consecutive green weekly candle. However, the sudden drop marks the largest single-day decline for Bitcoin in over a month.

Analysts and investors are closely watching these sudden changes, which raise questions about the near-term future of cryptocurrency prices. The market’s response to these sudden changes could set a defining tone for the rest of the year in the crypto world.

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