Cryptocurrency Market Sees Significant Decline

The entire cryptocurrency landscape took a hit on Sunday evening, leading to a notable downturn.

Bitcoin has hovered around $115,000 over the past day, but this comes after hitting its lowest point since July 10.

Previously, major cryptocurrencies surged on Friday following a somewhat hopeful speech by Chairman Jerome Powell regarding potential interest rate cuts. At one point, Bitcoin dipped below $112,000, but then quickly jumped over $117,000 within an hour.

Still, that boost didn’t last, and Bitcoin soon settled back toward $115,000, maintaining that level throughout most of the weekend. Just recently, however, it dropped again, hitting a six-week low of about $110,600 across various exchanges.

Although Bitcoin has managed to recover some ground, trading now at just under $113,000, many altcoins have followed a downward trajectory. Ethereum, the second-largest cryptocurrency, recently reached nearly $5,000, but despite hopes for a breakout, it fell to around $4,700 before bouncing back to approximately $4,800.

Many altcoins exhibited similar ups and downs in price within the last hour, impacting overleveraged traders significantly. According to Coinglass, liquidations spiked to over $300 million, with about 90% of those losses attributed to margin calls.

Liquidations on a daily basis have been nearly double that amount, affecting over 130,000 traders. One particularly large loss was reported on OKX, amounting to $12 million.