Bitcoin Plunged Below $106,000 Dragging Other Cryptocurrencies Down With It
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Cryptocurrency market capitalization fell by $170 billion (-5%) in 24 hours to $3.57 trillion. Traders once again faced mass liquidations of trading positions, and investor sentiment returned to “extreme fear” for the first time in six months.
A significant portion of the losses came from long positions, as investors were already bracing for Bitcoin’s rally at the beginning of the week. Long trades accounted for nearly 79% of liquidations, with the largest being a $20.4 million long position in Ethereum on the decentralized derivatives exchange Hyperliquid, which has suddenly become a major driver of leveraged cryptocurrency trading. Bitcoin accounted for approximately $344 million in losses, followed by Ethereum ($201 million) and Solana ($97 million); XRP, Doge, and other volatile cryptocurrencies lost tens of millions. The most active exchanges saw movements on Hyperliquid ($391 million), Bybit ($300 million), Binance ($259 million), and OKX ($99 million).
Amid falling cryptocurrency prices, investors are gripped by “extreme fear.” The crypto market’s Fear and Greed Index dropped to 22 out of 100 for the first time since April. This indicates that market participants are extremely concerned and prone to sell-offs.
