Hold onto your hats, crypto enthusiasts, because we're riding a rollercoaster! In one of the wildest plunges we've seen this year, the crypto market has nosedived by a whopping 8%, wiping out a colossal chunk of the sector's value—think hundreds of billions kind of chunk!
The market capitalization has slipped below $3.1 trillion as of February 25, after a jaw-dropping $200 billion vanished in just 24 hours. That's right, folks, it's been a while since we've seen numbers like these, reminiscent of the days post-election back in November.
We're now dancing precariously close to some serious long-term support levels. If we dip below the $3 trillion mark, we might just bid adieu to the bull market. But hey, we've seen this drama unfold before, haven't we?
According to Coinglass, more than 314,000 traders have been caught in the storm, with liquidations reaching nearly a billion dollars. Ouch! Over 90% of these were long positions, and BitMEX witnessed the largest single liquidation with a whopping $10 million in Bitcoin—yikes!
Bitcoin itself took a nosedive, losing more than 5% in a blink, plummeting from $96,000 to $91,000, which is a low we haven’t seen since January. But don’t despair, it seems to have found a little cushion and is bouncing back to $91,500 as we speak.
Ethereum wasn’t spared either, dropping around 10% and slipping below $2,500 with little sign of an immediate comeback. The altcoins? They got hammered too! Solana (SOL), Chainlink (LINK), Avalanche (Avax), Sui (SUI), and Hyperliquid (HYPE) all took a hit, with Solana down over 50% in just over a month.
But fear not, seasoned analysts are taking this in stride, calling it just another day in crypto-land. They've been through this rodeo before and know the drill: always have a plan!
If this caught you off guard, it’s a friendly reminder to always have a game plan in place. One pro tip: if you’re aiming for low $90ks for Bitcoin, maybe have a plan for the air-pocket below $86k too. And remember, there’s always a brighter horizon—just be prepared!
The Bitcoin Fear & Greed Index is telling us we're in “extreme fear” territory, dropping to its lowest since September at 25. However, take solace in the fact that we've seen similar market crashes in recent months, and while they’ve been brutal, they’re not uncharted territory.
Raoul Pal, a macro investor, reminds us to channel some zen, noting that these hefty pullbacks are part of the crypto cycle—remember 2017? With multiple 28%+ pullbacks and altcoin corrections of 65%, it was all part of the journey. So maybe it’s time to step away from the screen and do something a bit more relaxing. Until the next crypto wave, folks!
