Bitcoin experienced a rollercoaster of price fluctuations on Monday, especially during the night, when it plummeted to a new monthly low of $64,000. The primary digital asset had a relatively quiet weekend, hovering around $66,000, but things took a turn for the worse as Monday unfolded. The cryptocurrency briefly surged to a local peak of just over $67,200 before the bears seized control of the market and initiated a significant price drop. Within minutes, Bitcoin shed over three thousand dollars, hitting its lowest point since May 15 at $64,000 on Bitstamp. While Bitcoin has recovered slightly since then, now sitting close to $66,000, the aftermath of Monday’s volatility has left many traders reeling.
Altcoins Follow Suit
The volatility in Bitcoin’s price was mirrored by many altcoins, with several experiencing substantial price declines. Despite some recovery, popular coins like Shiba Inu (SHIB) and Dogecoin (DOGE) are still down by about 10% on the day. Other altcoins such as Solana (SOL), Avalanche (AVAX), Chainlink (LINK), Cardano (ADA), and Polkadot (DOT) also saw significant drops of 7-9%. Ethereum (ETH) suffered a similar fate, dropping to $3,450 after hitting a low of $3,330 earlier in the day. The bloodbath extended to other altcoins like NEAR, Uniswap (UNI), Polygon (MATIC), Wrapped Finance (WIF), Filecoin (FIL), and Fetch.ai (FET), among others.
Over-Leveraged Traders Wiped Out
The extreme price volatility witnessed on Monday proved catastrophic for over-leveraged traders, with over 190,000 of them getting liquidated within a single day. The total value of these liquidated positions exceeded $480 million, highlighting the brutal consequences of trading with too much leverage. The largest single liquidated order, worth $6.44 million, occurred on Binance and involved the ETH/USDC trading pair, according to CoinGlass. This debacle serves as a stark reminder of the risks associated with trading cryptocurrencies, especially for those who overextend themselves through leverage.
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