Bitcoin experienced extreme volatility on Monday, with a significant drop to a new monthly low of $64,000. The altcoins did not fare any better, as many witnessed substantial declines, leading to over 190,000 traders facing losses. The weekend had been relatively stable for the primary digital asset, hovering around $66,000. However, Monday started off on a disappointing note before the cryptocurrency saw a slight surge in value.
Bitcoin managed to reach a local peak of just over $67,200 before the bears took control and triggered a sharp decline. Within minutes, the price plummeted by over three thousand dollars, marking its lowest point since May 15 at $64,000. Although there was a slight recovery afterwards, the cryptocurrency currently stands at around $66,000. Altcoins such as SHIB and DOGE saw around a 10% decline, while SOL, AVAX, LINK, ADA, and DOT experienced drops of 7-9%. Ethereum (ETH) also took a hit, falling to $3,450 from $3,330 earlier in the day. Other tokens like NEAR, UNI, MATIC, WIF, FIL, and FET suffered losses as well.
The sharp market movements led to significant losses for over-leveraged traders, with more than 190,000 getting liquidated in the span of a day. The total value of liquidated positions exceeded $480 million during the same timeframe. The largest single liquidation order occurred on Binance, involving the ETH/USDC trading pair and amounting to $6.44 million, as reported by CoinGlass.
The events of Monday serve as a stark reminder of the risks associated with trading cryptocurrencies, especially during periods of high volatility. Traders who over-leverage themselves expose their positions to greater losses, as evidenced by the large number of liquidations on this dark day for Bitcoin. It is crucial for market participants to exercise caution, implement risk management strategies, and stay informed about market developments to navigate turbulent times like these. As the cryptocurrency market continues to evolve, it is essential for traders to adapt and learn from past experiences to improve their trading practices and protect their investments.
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