Just 24 hours ago, the crypto market seemed like a prosperous place after days, if not weeks, of uncertainty. Even the popular Fear & Greed indicator made it back into greed mode and reached a reading of 44. However, fast forward to today, and all the optimism from the beginning of the week seems to have been erased.
Observing the price action of the most popular cryptocurrencies in the period under review, it appears that Bitcoin (BTC) lost 2% at the peak of the fall, Dogecoin (DOGE) ironically fell 4.2%, and the third largest digital asset, XRP, gave back 3.78% of its price to the market.
Of course, the fact that the price rose by quite impressive margins yesterday has turned the bullish mentality of most market participants on its head, and the market always punishes those who get too greedy or come too late to the party.
This time was no exception, as, according to CoinGlass, nearly $300 million worth of positions in perpetual futures on cryptocurrencies were liquidated over the course of those 24 hours. Most of it? Long positions, of course — 56% to be exact.
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While not the most startling number — after several billion-dollar-plus liquidations in recent months, let’s face it, this is not that painful — the reaction in the prices of most digital assets, including the aforementioned “big three,” was quite eloquent.
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While what is next for crypto remains uncertain, one thing is for sure: the market remains thin. This is evidenced by the fact that not that much money was liquidated, simply because there was not that much to begin with, and by the fact that the dip was still severe, as not much buying power was used to stop the sell-off.