Key Points
- The global cryptocurrency market experienced a flash crash, leading to a 2% drop in market cap to $3.39 trillion.
- The crash resulted in $1.73 billion in liquidations, with Ethereum and Bitcoin bearing the brunt of the losses.
The cryptocurrency market is currently in a highly volatile phase, negatively impacting not only smaller tokens but also leading assets. This volatility sparked a flash crash which saw the global crypto market cap decrease by 2%, settling at $3.39 trillion, as per market data. Furthermore, the total value lost from the digital assets market over the past month is approximately $840 billion.
This selloff resulted in $1.73 billion in liquidations, with $1.32 billion belonging to long positions, in the last 24 hours according to data.
Leading Assets Hit Hard
Ethereum is at the forefront with $573.91 million in liquidations, out of which $485.86 million are longs, following a 4.5% price drop over the past day. Ethereum is currently trading at $3,330, a slight recovery from its dip to the $3,000 mark.
Bitcoin is not far behind with $499.89 million in liquidations, $444.12 million of which are longs, as the leading asset fell below the $100,000 mark for the first time since mid-May. At the time of writing, Bitcoin is hovering around $102,000, with its market cap just above the $2 trillion mark.
Data indicates that the total number of traders who have been liquidated is over 430,000.
Potential for Recovery
Following the recent market crash, some investors might be considering selling their digital assets to avoid further price drops.
According to data, Binance, the biggest crypto exchange by trading volume, recorded a net inflow of 8,403 BTC, roughly equivalent to $855 million, over the past day. This inflow indicates that investors are preparing to sell Bitcoin due to market volatility.
Conversely, 809 million USDT also entered Binance in the same timeframe. Inflows of stablecoin could suggest a potential buying spree, as some investors might see this as a buying opportunity.
Market sentiment, as per Santiment, has shifted from selling to “buying dips with confidence”. The market intelligence platform shows that the calls for a market “bottom” and “buy” signals have significantly increased after Bitcoin fell below $100,000.
It’s crucial to note that large investors continued their selloff on Nov. 4, but the sentiment shift could trigger a buying spree.
