The cryptocurrency market today witnessed a deep widespread correction, leading to panic among investors and liquidations worth hundreds of millions of USD. A series of large and small coins were severely affected, even showing signs of 'collapse'.
Main Developments
Bitcoin ($BTC ) is currently trading around $85,091, slightly down but still under strong selling pressure.
Ethereum ($ETH ) has fallen to $1,628, marking a significant drop compared to recent recoveries.
Altcoins like $BNB , $XRP, $ADA are also not escaping the downturn.
In total, over $620 million has been liquidated in just the last 24 hours, mainly from long positions, indicating high concern and significant profit-taking pressure.
Coins Showing Signs of 'Collapse'
Some cryptocurrencies are experiencing severe declines, losing significant value compared to their peak periods:
1. Huobi Token (HT): Current price: $0.418
Once dropped 93% in the past and continues to face significant pressure today.
2. Terra (LUNA): Trading at $0.158, almost unable to recover since the 'bubble burst' in 2022.
3. FTX Token (FTT): Current price: $0.862
Lost almost all value after the bankruptcy of the FTX exchange, confidence in FTT is nearly zero.
4. SushiSwap (SUSHI): Price: $0.556
The once-popular DeFi project is gradually being forgotten by investors.
5. yearn.finance (YFI): From a peak of over $90,000, now only around $4,499.
Indicates a flight from DeFi protocols during times of stress.
Causes of Market Pressure
Geopolitical and trade tensions:
The U.S. increasing tariffs on China has created a wave of concern about the risk of a global recession, causing money to flow out of risky assets, including crypto.
Widespread negative sentiment:
Investors fearing economic volatility rushed to take profits, especially after a hot streak of many coins.
Large position liquidations:
Pressure from the derivatives market also contributed to this drop, especially as leveraged positions were continuously liquidated.
Recommendations for Investors
Be extremely cautious with leverage, especially in times of unusual market volatility.
Limit bottom-fishing, as the market trend is still unclear and risks are high.
Closely monitor macroeconomic developments and liquidity conditions on exchanges to avoid systemic risks.
In the current context, capital preservation is the top priority. Short-term investors should maintain a strong mindset, while long-term investors may start looking for accumulation opportunities when the market stabilizes again. Don't let greed overshadow caution; this is a time when every decision needs to be considered more carefully than ever.
