Another crypto market dump caused a sharp dip in the prices of digital assets on Thursday. BTC plunged below $39,000 yesterday for the first time in almost 4 months. Bearish traders took over the market in the last 24 hours as the overall crypto market cap dropped by approximately $150 billion.
Among the top three digital currencies, Ethereum remained the hardest hit crypto asset. ETH lost approximately 10% of its value in the last 24 hours and reached a low of $2,820, which is the lowest level since September 2021.
The negative market sentiment has caused a massive plunge in the valuation of digital assets since the start of this year. During the first three weeks of 2022, the overall market cap dipped by almost 20%. In the same period last year, the market value of digital currencies jumped by nearly 25%.
BTC led the latest crypto plunge in 2022. The crypto asset, which accounts for nearly 40% of the market cap of digital currencies, dropped from $49,000 to $38,500 within the first three weeks of 2022. Altcoins like ETH, BNB, ADA and XRP also lost substantial value during the mentioned period.
Liquidations
The crypto market dump triggered millions of dollars worth of liquidations across the digital asset market in the past 24 hours. According to Coinglass, $600 million worth of long crypto positions were liquidated within a single day. BTC accounted for nearly 50% of all long liquidations. With that, investors took major losses during the market correction.
“Bitcoin investors have realized large losses during this sell-off, with net daily losses between $600M and $875M/day. Whilst these are significant sums, they remain small relative to $1B+ losses realized during the May-June capitulation, and the deleveraging of 4-December,” Glassnode noted.
“BTC is now -38.4% from its November 10th All-Time High of $68.7k. Yet BTC's returns over the past 5 years are still 47.5x higher than the SP500 during this time,” Santiment highlighted.
