In the last 24 hours, the worldwide cryptocurrency market has experienced a decline of between $130 billion and $160 billion, which corresponds to a decrease of 3.2% to 3.9% in total market capitalization, now estimated to be around $4.0–4.1 trillion.
The 4-hour performance of the overall cryptocurrency market capitalization indicates a decrease of $160 billion (–3.9%), dropping from $4.13 trillion to $3.97 trillion.
The correction became more severe as Bitcoin fell approximately 5%, briefly reaching a low of about $118,500, resulting in $577 million in liquidations within just one hour, predominantly affecting long traders. Over the entire 24-hour period, total liquidations escalated to $1.05 billion, with $778 million originating from long positions.
Charts that monitor trading volume indicate a significant increase in sell orders during times of peak volatility. The derivatives markets, in particular, witnessed a substantial unwinding of leveraged positions as stop-loss orders and margin calls cascaded throughout the system.On-chain metrics support this observation, showing a spike in exchange inflows as investors transferred assets from cold storage to market platforms, suggesting a willingness to liquidate.
Also read: Ethereum leads crypto markets as Bitcoin stalls below key levels
Analysis of technical aspects and market forecast
From a technical perspective, numerous large-cap assets have surpassed significant thresholds, notably the 50-day moving averages for both Bitcoin and Ethereum. In the midst of the sell-off, several leading assets entered oversold territory, with RSI values falling into the territory indicative of a relief rally. However, macroeconomic volatility continues to be high, and any brief recovery is expected to face substantial resistance from newly cautious sellers.
This drawdown of $130–160 billion highlights the crypto market’s heightened sensitivity to leverage and shifts in sentiment. Although broader adoption trends remain consistent, this situation serves as a stark reminder: digital asset markets can fluctuate rapidly, and traders must emphasize liquidity management and risk controls to effectively navigate such volatile conditions.