Over the past 24 hours, more than 97% of the top 100 altcoins have seen extraordinary sell-offs as a result of a more widespread and protracted price drop that was driven by the price of bitcoin (BTC). Data from CoinGlass reveals that due to the negative incursion, the market has seen $162.7 million in total liquidations over the last day.
The most valuable digital currency, Bitcoin, has slid beyond the $25,000 support level and is currently trading at a spot price of $24,888.49. The cryptocurrency lost 4.28% of its value overnight before it breached the support level it had maintained for the previous month.
The liquidation has spread to lesser capitalised coins, like Injective (INJ), Sui Network (SUI), and Internet Computer (ICP), among others. Trust Wallet Token (TWT) is still one of the few cryptocurrencies with a notable increase among the largest cryptocurrencies.
Surprisingly, Ethereum (ETH), which has a total worth of $60.54 million, has seen more financial liquidations due to its dismal performance. The overall amount of money liquidated by bitcoin is estimated to be $46.30 million, while the sum of all other cryptocurrencies is $11 million.
Two sources of FUD
It is especially uncommon for the cryptocurrency market to see a severe decline in price without at least one underlying factor. The testimony of Aaron Kaplan, the CEO of the regulated cryptocurrency company Prometheum, before a U.S. House committee about crypto regulations, may have caused caution for the current market bear turn.
Kaplan has been under fire from industry insiders, and the market decided to share their concern. Additionally, worries about Tether’s (USDT) stablecoin depegging are exponentially increasing. Because there is a chance that the parent company may sell off its Bitcoin assets to assist the stablecoin restore its peg, Bitcoin is particularly mired in the FUD surrounding Tether.
In the event that these forecasts come to pass, investors are exercising prudence.
