Bitcoin and Ether Experience Sudden Decline
The price of Bitcoin (BTC) took a sharp downward turn, dropping below $41,000 in just 20 minutes. This sudden decline resulted in a 6.5% drawdown from $43,357 to as low as $40,659. At the time of publication, Bitcoin was trading slightly above the local low at $41,960.
Ether (ETH), the second-largest cryptocurrency by market cap, also experienced a significant decline, falling over 8.9% in the same time frame. However, the price of ETH has since stabilized and is currently trading at $2,233, down 5.3% for the day.
Other Cryptocurrencies Also See Losses
Bitcoin's decline had a ripple effect on other large-cap crypto assets. Binance Coin (BNB), Ripple (XRP), and Solana (SOL) all posted losses as well.
Millions Worth of Long Positions Liquidated
The sudden drop in Bitcoin's price caused more than $270 million worth of long positions to be liquidated, according to data from CoinGlass. Additionally, the decline wiped out around $1.2 billion in open interest on BTC, which currently stands at approximately $17.9 billion.
Largest Single-Day Decline in Over a Month
This drawdown marks the largest single-day decline for Bitcoin in over a month. Despite this, the asset had experienced significant growth of over 12% in the past 30 days. Just minutes before the decline, Scott Melker of Wolf of All Street had questioned when a correction would occur.
