The crypto market experienced a significant decline, with $300 billion erased in 24 hours, causing concerns among investors. The frequency of "flash crashes" in the sector has increased, leading to sudden volatility and confusion. Bitcoin fell below $95,000, while Ethereum dropped 37% over 60 hours. The surge in short positions and liquidity shifts in Ethereum, influenced by Wall Street hedge funds, contributed to the volatility. Institutional investors are shorting Ethereum while turning their attention to Bitcoin, exacerbating the volatility in altcoins. The market is polarized between retail and institutional investors, leading to erratic price movements and significant "air pockets." Sentiment in the crypto market is at its lowest levels since 2024, with the fear level increasing. Public figures like Eric Trump and companies like MicroStrategy influence market sentiment. Ethereum has managed to regain the $2,500 level after recording losses of 7% in the 24-hour timeframe.
Content Editor ( newsbtc.com )
- 2025-02-27
Flash Crashes On The Rise: Understanding The Recent $300 Billion Crypto Drop
