The Cryptocurrency Market Experiences High Volatility and Drops to New Lows

The Cryptocurrency Market Experiences High Volatility and Drops to New Lows

The cryptocurrency market witnessed a significant amount of volatility on Monday, with Bitcoin hitting a new monthly low of $64,000. This sudden drop came after a relatively quiet weekend for the primary digital asset, which was hovering around $66,000. Despite starting the day on a positive note and reaching a local peak of just over $67,200, Bitcoin quickly lost traction as bears took control of the market. Within minutes, the price plummeted by over three thousand dollars, marking its lowest point since May 15.

Altcoins Follow Suit

The altcoins also experienced similar fluctuations, with many of them recording substantial price drops. For instance, SHIB and DOGE are still down by around 10% for the day, while SOL, AVAX, LINK, ADA, and DOT have seen declines ranging from 7-9%. Ethereum (ETH) suffered a drop to $3,450 after hitting $3,330 earlier in the day. Other altcoins like NEAR, UNI, MATIC, WIF, FIL, and FET also reported losses.

Impact on Traders

The high volatility in the cryptocurrency market has had a detrimental effect on traders, particularly those who were over-leveraged. According to reports, over 190,000 traders were liquidated in the past day, with the total value of liquidated positions exceeding $480 million. The largest single liquidation order took place on Binance, involving the ETH/USDC trading pair and amounting to $6.44 million.

Overall, the cryptocurrency market’s susceptibility to extreme fluctuations was once again highlighted on Monday, with Bitcoin and altcoins experiencing significant price drops. This serves as a reminder of the inherent risks associated with trading digital assets and the importance of exercising caution, particularly during periods of heightened volatility. Traders must be mindful of market conditions and avoid over-leveraging to mitigate potential losses in such circumstances.

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