Bitcoin (BTC) Drops 5.48% to $96,308.64 as Altcoins Bear the Brunt of the Sell-off

The cryptocurrency market witnessed a sharp decline in the past 24 hours, with Bitcoin (BTC) dropping 5.48% to $96,308.64. Altcoins, however, bore the brunt of the sell-off, with significant losses across the board.

Cryptocurrency prices dropped on Monday evening, with Bitcoin down 5.48% over the past 24 hours.

BTC was trading at $96,308.64 by 6:15 p.m. ET, according to CoinDesk data. The cryptocurrency's market cap was valued at $1.91 trillion.

During the past 24 hours, trading volume surged to $62.75 billion, up 25.8%.

Most altcoins also saw their prices decline on Monday evening.

Hyperliquid (HYPE) led the altcoin slump with a 15.29% drop to $21.62. Once a high-flyer with a 60% gain in the past month, HYPE has been on a consistent downward trend, losing 10.24% over the last week alone.

Celestia (TIA) dropped by 14.71%, trading at $4.66 with a market cap of $2.24 billion.

Ethena (ENA) fell by 13.65% to $0.9913, while the decentralized exchange token dYdX (DYDX) declined by 13.49% to $1.40. Meme coin Bonk (BONK) slid by 13.29% to $0.00002976.

The 24-hour liquidations highlighted the extent of the market turbulence. Over 204,000 traders were liquidated, resulting in $626.85 million in losses. The largest single liquidation involved $17.74 million worth of ETHUSDT on Binance.

Bitcoin accounted for $110.89 million in liquidations, with $98.6 million from long positions and $12.19 million from shorts. Altcoins contributed significantly to the $565.68 million long liquidations, compared to $61.22 million in shorts.

According to experts, the sell-off could be attributed to over-leveraged positions and traders taking profits after recent rallies. This was particularly evident in altcoins like Hyperliquid, which had surged dramatically. The spike in trading volumes also indicated panic among traders.

While this correction could present buying opportunities, analysts cautioned that the market remained highly volatile. The current dip underscored the importance of managing risk and diversifying portfolios, they suggested, advising traders to remain vigilant.