Cryptocurrency market suffered a record liquidation of $ 1.7 billion per day

The cryptocurrency market has suffered a sharp collapse — over the past day, the industry has lost almost 7% of its capitalization and dropped to $ 2.78 trillion. The reason was the massive closure of long positions and a reduction in market leverage, which caused panic among investors.

Bitcoin BTC $78,794.48 Mezo Wrapped BTC 1.89% Market capitalization $44.89 million VOL. 24 hours $3.55 billion dropped to $ 82,000, the lowest in recent weeks, Ethereum ETH $2,372.29 Bridged Ether (StarkGate) 2.48% Market capitalization $54.29 million VOL. 24 hours $3.5 billion dropped below $ 2,800, and major altcoins, including Solana SOL $105.29 Binance-Peg SOL 3.38% Market capitalization $0.12 billion VOL. 24 hours $0.67 billion , XRP XRP $1.65 XRP 3.52% Market capitalization $100.27 billion VOL. 24 hours $0.4 billion , and BNB BNB $778.85 BNB 3.28% Market capitalization $106.2 billion VOL. 24 hours $0.26 billion , lost from a few to more than 10% over the week. The Fear and Greed Index is showing a sharp drop in confidence, and the RSI for key assets has entered the oversold zone.

Over the past day, positions worth more than $ 1.69 billion were liquidated, of which $ 783 million was on bitcoin and $ 416 million on Ethereum. In total, more than 269,000 traders were forced to close their trades, indicating that leverage was overused during the previous growth.

Technical indicators confirm the market’s weakness: The RSI is close to 30, the MACD remains in the negative zone, and high trading volumes to the downside increase the risk of a breakdown of key support in the $ 80,000-$ 78,000 range. This could pave the way for a further decline.

Analysts predict increased volatility in the near future. Despite possible short-term rebounds due to oversold conditions, a stable market reversal will require a change in the price structure, confirmation of volumes, and favorable macroeconomic conditions.