Crypto Market Drops 2.5% After Bitcoin ATH Surge
The crypto market fell 2.5%, wiping out $950M in liquidations after Bitcoin’s ATH, with memecoins hit hardest.
- Crypto market fell 2.5%, erasing $950M in liquidations
- Bitcoin and Ethereum both dropped over 2%
- Memecoins and altcoins saw the sharpest declines
After a remarkable surge that saw Bitcoin hit a new all-time high, the crypto market faced a sharp pullback, dropping by 2.5% overall. The sudden correction wiped out nearly $1 billion in positions, with $813 million coming from long liquidations. Despite the dip, the Fear & Greed Index (FGI) still sits at 60, reflecting ongoing investor confidence, albeit with a cautious tilt.
Bitcoin dropped 2.28% to $118,993, while Ethereum followed with a 2.31% decline to $4,637. These corrections, though not catastrophic, triggered a wave of volatility across the broader market.
Altcoins and Memecoins Take a Bigger Hit
While the majors held relatively steady, altcoins experienced more severe drops, falling between 3% and 5%. Memecoins, which had enjoyed bullish momentum during the market’s recent upswing, were hit hardest in the downturn. The highly speculative nature of memecoins often leaves them more vulnerable during pullbacks.
With a total market cap now standing at $4.28 trillion, investors are watching closely to see if this is a short-term shakeout or the beginning of a broader correction. Large-scale liquidations like this can sometimes mark a reset before the next rally, especially when investor sentiment remains in the “greed” zone.
What’s Next for the Market?
Liquidations totaling $950 million are significant, but not unusual during periods of extreme price movement. This latest correction serves as a reminder that even in bullish phases, crypto remains a high-risk, high-reward market.
As traders reassess their strategies, especially in the altcoin and memecoin sectors, all eyes will be on Bitcoin’s ability to stabilize and reclaim momentum. Continued volatility is likely, but for seasoned investors, this could present new buying opportunities.
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