Greed

Ethereum

Long

Major

Bitcoin

The cryptocurrency market took a sharp and unexpected dive over the past 24 hours, sending shockwaves through investors and traders alike. A massive $1.76 billion was wiped out as 583,810 traders faced <a href="https://www.coinglass.com/LiquidationData" target="_blank" rel="noreferrer noopener">liquidations</a>, marking one of the largest sell-offs since 2021.   
This sudden decline came as Bitcoin and altcoins dropped sharply, fueled by a mix of over-leveraged trades, investor fear, and market uncertainty.   
Let's go into further detail.   
<h2 class="wp-block-heading" id="h-bitcoin-leads-the-market-decline">Bitcoin Leads the Market Decline</h2>   
<a href="https://coinpedia.org/beginners-guide/what-is-bitcoin/" target="_blank" rel="noreferrer noopener">Bitcoin</a>, the world’s largest cryptocurrency by market cap, was the primary driver of this<a href="https://coinpedia.org/price-analysis/why-bitcoin-is-going-down-and-how-low-it-can-go/" target="_blank" rel="noreferrer noopener"> sell-off. </a>It dropped to an intraday low of $94,129 before partially recovering to $97,000. This price movement led to $189.19 million in liquidations, with $147.95 million coming from long positions and $41.23 million from short positions.   
Bitcoin’s fall below key price levels added pressure to the market, amplifying the sell-off.   
<h2 class="wp-block-heading" id="strong-altcoins-struggle-as-well-strong">Altcoins Struggle as Well</h2>   
The sharp market decline wasn’t limited to Bitcoin. Major altcoins like Ethereum (ETH), Solana (SOL), XRP, and Dogecoin (DOGE) saw price drops ranging from 8% to 13%.   [post_titles_links postid="391313"]   
One of the largest individual liquidation orders occurred in Ethereum’s ETH/USDT trading pair on Binance, with the order valued at $19.69 million. Altcoin liquidations totaled $563.25 million, with $537.43 million coming from long positions.   
This shows the market was highly over-leveraged, making it more vulnerable to sudden price movements.   
<h2 class="wp-block-heading" id="h-what-caused-this-sharp-decline">What Caused This Sharp Decline?</h2>   
Analysts believe several factors drove the sell-off:   
<ul class="wp-block-list">
  
 <li>Over-leveraged positions: Many traders had taken on high debt, making them more vulnerable during sudden market changes.</li>   
 <li>Weak market sentiment: Growing fears among investors added to the sell-off pressure.</li>   
 <li>Stop-loss orders: As Bitcoin’s price dropped below important support levels, stop-loss orders triggered a chain reaction of further selling.</li> 
</ul>   
These factors combined to wipe out billions of dollars across the market.   
Investor Sentiment Review   
Despite the significant sell-off, the <a href="https://alternative.me/crypto/fear-and-greed-index/" target="_blank" rel="noreferrer noopener">Crypto Fear and Greed Index remains at 78</a>, signaling “Extreme Greed.” This suggests that even with the volatility and market downturn, investors still hold optimism about a recovery.   
Traders are clearly watching for signs of market stabilization as they try to predict if prices will rebound soon.   [article_inside_subscriber_shortcode title="Never Miss a Beat in the Crypto World!" description="Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more." category_name="News" category_id="6"]   
The future remains uncertain as the market processes these losses. Investors will be monitoring key price levels and market trends closely.   
Bitcoin’s behavior will likely set the tone for altcoins and the broader market in the coming days.   
<h2 class="wp-block-heading" id="h-faqs">FAQs</h2>   
<div class="schema-faq wp-block-yoast-faq-block">
 <div class="schema-faq-section" id="faq-question-1733828683976">
 How much did Bitcoin's price drop during the sell-off? 
 Bitcoin plunged to $94,129 before recovering to around $97,000, causing $189.19M in liquidations. 
 </div> 
 <div class="schema-faq-section" id="faq-question-1733828764784">
 Why did altcoins like Ethereum and Solana drop in value? 
 Altcoins faced 8–13% losses due to market-wide selling pressure, weak sentiment, and leveraged positions being liquidated. 
 </div> 
</div>

Crypto Market Correction Sparks $1.76 Billion Sell-Off in Just 24 Hours

Table of Contents

CoinPedia News

Other articles published on Dec 10, 2024

This Group of Altcoins Was One of the Biggest Waves of Excitement in 2023: Now Binance Breaks Bad...

Did Trump Mislead About the Fed’s Bitcoin Reserve?

Who is the Upcoming US SEC Chair Paul Atkins?

Crying Kamala (CRYKAMA) Memecoin Will Explode Over 17,000% Before Exchange Listings, While Shiba ...

Avalanche, Solana eye new highs; Experts believe this altcoin could offer higher return

MicroStrategy Acquires Additional $1.5B Bitcoin, Expands Holdings to 402,100

Join our free newsletter for daily crypto updates!