The cryptocurrency market has seen a major decline in the last 24 hours. The decline in the value of leading assets such as Bitcoin, Ethereum, and XRP has turned the general sentiment in the market into a bearish trend. Investors are forced to develop new strategies during this volatile period of the market.
$1.69 Billion Liquidation Shock
In the last 24 hours, a total of $1.69 billion worth of leveraged positions were liquidated. According to Coinglass data, 558,704 investors suffered losses in this process. The majority of liquidations occurred in long positions. It also revealed that bulls were the group most affected by the market decline.
Specifically, out of the $1.65 billion liquidation, $1.5 billion came from long positions, while only $178.21 million came from short positions. This chart shows that investors using high leverage in the market are experiencing serious losses and the current downward trend may continue.
BONK and FLOKI Among the Most Affected
As of December 10, 2024, BTC, ETH, and XRP appear to have lost 2%, 6.5%, and 14.6%, respectively. However, meme coins such as BONK and FLOKI were the most affected by this downward wave. BONK drew attention with a 22% loss, while FLOKI lost 21.5%.
The fact that these meme coins have fallen at a higher rate than other assets has raised concerns among investors. In particular, the fact that such assets are often tied to speculative movements has further deepened the effects of market volatility.
Why Is the Cryptocurrency Market Falling?
Over the past month, the cryptocurrency market has seen a major rally . Many assets have gained between 100% and 400%. However, no correction occurred during this rise: This led to the market overheating. This rally, which accelerated after the US presidential election results, entered a natural correction process.
The current correction in the market is a result of investors closing their positions to make a profit. Also, high volatility is putting pressure on investors who are making short-term speculative trades.
Cryptocurrency Market Opportunities: Is Now the Time to Invest?
According to experts, these declines are an opportunity to buy leading crypto assets at discounted prices. Views shared on social media indicate that it is time for investors to accumulate large assets. On the other hand, as we reported at Kriptokoin.com, whales and institutional investors continue to increase their assets.
However, it is necessary to be careful during this process. Investors should pay more attention to technical and fundamental analysis to understand the direction of the market. The fact that the market is showing signs of recovery during this downturn requires investors to act strategically.
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