Small-cap altcoin liquidations dominate, market cap falls 2.3%

Bitcoin’s price movements have historically impacted the broader crypto market, creating waves of mixed signals around altcoins.

This time, Bitcoin (BTC) falling below $98,000 brought a market-wide downturn, largely affecting small-cap altcoins. According to data from CoinGecko, global crypto market capitalization decreased by 2.3% in the past day, reaching $3.47 trillion.

The value of the cryptocurrency market even reached a daily low of $3.38 trillion, wiping out over $120 billion before regaining upward momentum.

As a result, total crypto liquidations increased by 35% to $494.5 million, according to Coinglass data. Of this amount, $366 million is long positions and the remaining $127.8 million is short positions.

Crypto liquidations | Source: Coinglass

Small-cap altcoins recorded liquidations of over $100 million in the last 24 hours, including $83.7 million long and $16.4 million short, compared to $56.4 million long and $22.6 million Bitcoin, which is $79 million. left its short positions behind.

According to data provided by Coinglass, The Sandbox (SAND) was the only major altcoin to be liquidated in a short time as its price recorded a 31% increase in the past day. Bonk (BONK) also has a slightly bullish liquidation map due to the crazy roller coaster between $0.0000431 and $0.0000486.

Leading altcoin Ethereum (ETH) recorded liquidations of $43 million in the last 24 hours, dominated by long positions, falling 1.1% to $3,385.

Data shows that Binance, OKX and Bybit crypto exchanges are leading the pack with liquidations of $216 million, $120 million and $116 million respectively.

The largest liquidation in the BTC/USDT pair, worth $13 million, also occurred on Binance, the largest cryptocurrency exchange by transaction volume.

Most importantly, this market-wide correction is considered normal at this point due to overheated and greedy market conditions.

Another wave of bullish momentum for Bitcoin could also impact altcoins, potentially triggering further bullish sentiment among market participants.