The market experienced intense Fluctuation, Cryptocurrencybig dump

Last night, the cryptocurrency market suffered a lot, and negative emotions came rushing in. Traders were busy reducing positions in various digital assets. Bitcoin plunged sharply, dropping more than 6% at its lowest point. Ethereum, the second-largest digital asset by market capitalization, experienced a big dump of 27% for a while. This is the biggest drop in a day for Ethereum since May 2021. Many mainstream cryptocurrencies have dropped to their lowest points in recent weeks. The altcoin market is even worse, with strong selling sentiment and a sudden collapse of investor confidence. The entire market is in a miserable state.

The largest Fluctuation in history
In history, the Crypto Assets market has also experienced several large Fluctuations. For example, in August 2024, the price of Bitcoin fell below $53,000, evaporating a market value of $510 billion in three days, and then breaking the psychological barrier of $50,000. However, compared with yesterday's Fluctuation, although these Fluctuations are also large, they did not reach the degree of yesterday's intense Fluctuation. In yesterday's market, the magnitude of the drop in Bitcoin and Ethereum, as well as the speed of spread of market panic, exceeded several previous Fluctuations.

Investors suffered heavy losses
According to CoinGlass market data, there were as many as 720,000 liquidations in the cryptocurrency market in the past 24 hours, with a total liquidation amount of up to 2.21 billion US dollars. Among them, the liquidation amount of long positions reached 1.87 billion US dollars, and the liquidation amount of short positions reached 340 million US dollars. This data is comparable to the scale of liquidations caused by some major events in history.

In the situation of violent Fluctuation in the market, the risk of leveraged trading is magnified. Many investors suffered serious financial losses in a short period of time, and some even lost their entire fortune. For example, some investors leveraged long at the high point of the Bitcoin price. As the price big dump, their positions were quickly liquidated, resulting in heavy losses. And some investors who leveraged short at the low point also suffered huge losses as the price rebounded.

Kill more first, then kill empty
After the big dump, the Cryptocurrency market rebounded sharply intra-day. Bitcoin rebounded to break through $102,000 per coin this morning, an increase of more than 4%; Ethereum also rebounded to break through $2,900 per coin. Such a violent rebound caught many investors off guard, and the shorts kept getting liquidated. First, the leveraged longs were liquidated, and when the longs were all liquidated, the leveraged shorts were also liquidated. This situation of both longs and shorts being cleaned up has made the market even more chaotic.

Increased market uncertainty
The uncertainty of the Cryptocurrency market is particularly high next, and Trump's tariff policy has scared the market enough to make investors rush to sell risky assets. As an emerging market, the Cryptocurrency market itself has a large Fluctuation, as long as it is affected by external factors, it is very easy to have a particularly large Fluctuation.

Friends, the sudden wealth and bankruptcy of many people are just a thought away. Who can withstand such drastic fluctuations?