Bitcoin (BTC) Tumbles 6% as Crypto Market Liquidations Hit Unexpected Record of $849M

Sell-offs on the market are not unusual and mostly follow the extensive drop in the price of Bitcoin (BTC).

The broader crypto market sell-off has triggered an all-time high in total liquidations, which now stand at $849 million, as the total capitalization of all digital currencies fell 6.65% to $3.37 trillion.

Sell-offs on the market are not unusual and mostly follow the extensive drop in the price of Bitcoin (BTC). At the time of writing, the top coin has fallen by 5.81%, picking up a 24-hour liquidation of $259.21 million. Long traders were most affected by the sell-offs as their bet failed to materialize, losing $247.48 million overnight.

Sell-offs were also seen among altcoins, with a spotlight on Ethereum (ETH), Solana (SOL), XRP and Dogecoin (DOGE).

While Ethereum saw a total liquidation of $109.79 million, Solana, XRP and Dogecoin saw $38.02 million, $33.29 million and $24.38 million, respectively. These recorded sell-offs are not uncommon in the industry, as the market capitulates when the level of exposure reaches a record high.

With the market looking to recover, the focus will remain on Bitcoin and the $100,000 level. If bulls can again secure this resistance level, the optimism to press for a new high may return.

Top market analysts have projected that a major correction is coming for Bitcoin. Among the experts emphasizing this shift is Arthur Hayes, BitMEX cofounder and former CEO.

However, amid the bearish projection, BTC remains the reference point for the entire industry. The network fundamentals and demand source provide a crucial anchor for long-term growth.

Since the halving, the daily average demand from the spot Bitcoin ETF market still far outpaces BTC emissions. Key proponents like Samson Mow believe this imbalance will help make Bitcoin’s price parabolic.