The digital currency market has entered into a bear market as the total crypto market capitalization dropped by 3.57%. This downturn is evident from the fact that more than $249 million has been liquidated within 24 hours. The witnessed slump comes after Bitcoin and Ethereum, the two major players, suffered losses and hit their respective significant lows of $30,000 for BTC and $2,000 for ETH.

Long-term traders are mainly responsible for this sell-off as significant liquidation has been observed on crypto tokens. Ethereum has witnessed more liquidations when compared to Bitcoin, with over $58 million burned in the process. On the other hand, the latter has dropped by $53.6 million.

Interestingly, the majority of altcoins also had long futures trades liquidated particularly Dogecoin, leading the chart by a huge margin. It is followed by XRP and Arbitrum (ARB). Collectively, these two digital currencies have an estimated 65.4% dominance over the entire crypto industry.

The bearish market does not seem to indicate a long-term downtrend as analysts and industry leaders still believe that the future of digital currencies is positive. Corrections are essential to help the industry set a more bullish scene, as can be seen from previous cycles. In the long run, these trends could help the market bounce back to record prices.



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