Bloodbath on the crypto market: Bitcoin and Co. suffer massive price losses

Yesterday green, today red: A chain reaction on the futures market has led to heavy price losses on the crypto market. The president of El Salvador is taking it in stride. Market Update.

The Bitcoin debut might have been imagined differently in El Salvador. “B-Day,” when the cryptocurrency was officially crowned the state currency, quickly turned into “D-Day.” In fast motion, the overall market collapsed under the pressure of a massive sell-off last night. In just 30 minutes, the bitcoin price dropped $5,000. On some exchanges, the price even briefly crashed to $43,000 before recovering to $46,000. The slump followed a prolonged period of upward movement, in the wake of which BTC was able to rally to over $52,000 as recently as yesterday. The cryptocurrency has distanced itself significantly from this again. As of press time, the largest cryptocurrency is trading at $45,495 – down 13 percent in 24 hours.

In the altcoin market, the carnage has left even bigger notches. On a day-over-day basis, all of the top 10 assets are posting double-digit percentage price declines. Polkadot (DOT) has fared particularly badly, with a 25 percent drop in value. Ethereum (ETH), Cardano (ADA) and Solana (SOL) are each down 15 percent. Binance Coin (BNB) and Dogecoin (DOGE) are turning down about 19 percent, while XRP is taking a 21 percent setback.

The total market cap lost around $400 billion in yesterday’s trading session. As recently as midday, the path to the May record high seemed clear. Until then, there is now a gap of 500 billion US dollars. At the time of going to press, however, the total value of all crypto assets could rise above the symbolic 2 trillion mark again.

Bitcoin price in spin cycle

A day after the nosedive, the Twitter world is trying to put the crash in perspective. This much is certain: the crash was triggered by a wave of liquidations in the derivatives markets. As Glassnode tweets, “over $4 billion in bitcoin open interest was liquidated during this selloff.” On-chain researchers call it the “most significant leverage flush since the mid-May selloff.”

CryptoQuant analyst “CryptoVizArt” also concludes. In an analysis of what happened, he too comes to the conclusion “that this price fluctuation was mainly driven by the futures market.” According to the report, whales leveraged themselves in the futures markets, “Considering the massive drop in open interest, it can be assumed that a significant number of highly leveraged positions were flushed out of the market.”

News portal CryptoDiffer detailed the level of liquidations across all exchanges in a <a href=”″ target=”_blank” rel=”noope” yesterdayner”>tweet put the total at US$3.54 billion. According to well-known analyst Willy Woo, BTC liquidations amounted to US$1.1 billion.

Investor sentiment tilts

The chain reaction has also dragged down the Crypto Fear and Greed Index. Just yesterday, the pointer stood at 79 points. In the meantime, the sentiment barometer has slipped to 47 points.

Nevertheless, there is no talk of doom and gloom. President Nayib Bukele took the price drop calmly and as an opportunity to replenish the stocks by another 150 BTC. In total, the country now holds 550 Bitcoin.

While the “slip” once again shows the unpredictability of the crypto market and that domino effects in futures markets can quickly take on a downward spiral of their own. Nevertheless, yesterday’s sell-off did nothing to change strong network data. The “buying the dip” mentality could thus push the market back up quickly.