The adverse and volatile price developments in the cryptocurrency market continue to bite for the second day in a row, with Bitcoin (BTC) plunging below $48,000. Most of the altcoins have also suffered even more with major price drops, and the crypto market cap has erased over $100 billion within a day.
Bitcoin has plunged below $48K for the first time in five days and analysts think that a further pullback is imminent. It was only two days ago when the biggest crypto was flying high and charting some multi-month highs.
As reported on August 23, the flagship crypto broke above the $50K barrier for the first time since mid-May when it crashed in the steep correction towards $29,000. On Monday, BTC soared to reach as high as $50,400 before dropping back below the $50K psychological barrier.
The bulls appeared to have taken a breather. After Bitcoin lost the $50K mark rapidly, it kept dumping. In the past 24 hours, the crypto has been threatening to break below $47,000.
After plunging to $47,600, bitcoin bounced off and added $1,000 in value within hours, but the relief rally was short-lived. Bears have come back again to dominate the market and they pushed the virtual currency downwards to settle below $48K once more.
This massive volatility in the last 24 hours has resulted in a lot of pain for some of the leveraged traders. Bybit data indicates that the liquidations within this period have gone up to more than $450million. The biggest single liquidation order has happened on Bybit. A user who trades bitcoin on the platform has reportedly lost around $5 million in the last 24 hours.
Altcoins Also Retrace Hard
As it normally happens when there is increased volatility in the cryptomarket, the altcoins’ fluctuations are more impressive. However, this time they have all headed south. Ethereum is down by around 5%, and it currently trades below $3,200. Binance Coin has taken the correction relatively well, with a 2.5% loss to trade around $485.
Cardano had surged to reach new all-time highs recently but it is currently down by 6.5% trading below $2.7. Solana (-10%), Uniswap (-8.5%), Polkadot (-7%), Ripple (-8%), Dogecoin (-8%), Bitcoin Cash (-5%), and LUNA (-11%) are languishing deeper in red.
More losses are also seen from Audius (-10%), SushiSwap (-10%), Ontology (-11%), XinFin Network (-11%), Zilliqa (-12%), SwissBorg (-12%), Telcoin (-13%), and many others.
Eventually, the cumulative market cap of all crypto assets has lost over $100 billion in a day.