The crypto market has weakened again, with large-scale liquidations in the derivatives market amplifying the downturn. Over the past 24 hours, liquidations have exceeded $660 million, primarily from long positions, as the market quickly shifted from a correction to broader risk-off trading.
Clearing amplifies selling pressure
The direct trigger for this downturn was a chain reaction of liquidations in the derivatives market. As prices continued to decline, exchanges automatically liquidated highly leveraged positions, further increasing selling pressure. Bitcoin and Ethereum were the primary areas of liquidation, after which the pressure spread to additional major tokens.
The price decline, forced liquidations of positions, and continued increase in sell orders created a classic chain reaction. What began as a temporary pullback thus evolved into a broad market-wide sell-off.
- Over $660 million in liquidations in the past 24 hours.
- Long traders bore the majority of the losses.
- Bitcoin and Ethereum account for a larger share of liquidations.
Bitcoin has fallen below a key level.
Bitcoin fell more than 3% intraday and broke below the $63,000 level, signaling a clear weakening in short-term sentiment. Over the previous several trading days, Bitcoin made multiple attempts to reclaim higher levels but failed to sustain momentum, further reinforcing the market’s cautious outlook.
Currently, the $60,000 to $61,000 range has become a key area of market focus. If this zone continues to break down, it could trigger a new wave of liquidations and further weigh on the overall performance of crypto assets.
Ethereum declined more sharply, nearing 6% intraday. Amid rapid liquidation of leveraged positions, capital has clearly reduced exposure to high-volatility assets. The article notes that Ethereum has recently underperformed Bitcoin, and after losing support at $1,700, market sentiment came under further pressure.
Altcoins also decline in tandem
XRP fell about 3%, and other major altcoins such as Solana, Cardano, and Dogecoin also continued to decline. Compared to Bitcoin, altcoins experienced more significant losses during this correction, indicating that capital is flowing out of higher-risk sectors.
The article suggests that this downturn is more likely due to a broad decline in risk appetite rather than being triggered by news from a single project. In other words, the market is responding to macro-level risk-off sentiment, with more speculative assets being hit first.
Fear sentiment is rising
As prices weakened, market sentiment quickly turned cold. The Fear & Greed Index has dropped to 20, entering a clear fear zone. Meanwhile, open interest has declined and volatility has risen, indicating that traders are reducing their risk exposure.
The article notes that periods of extreme fear are often accompanied by more intense short-term volatility. The market may remain highly volatile until buying pressure reclaims key levels, and whether Bitcoin can hold around $60,000 will be a key focus in the coming period.