Key Points
- The cryptocurrency market experienced its largest single-day liquidation in 24 hours, severely affecting ETH and DOGE holders.
- Bitcoin dominance increased, signaling a potential extension of the bearish outlook for altcoins.
The cryptocurrency market recently underwent its most significant single-day liquidation in 24 hours, leading to major losses for traders.
The most heavily impacted were holders of Ethereum (ETH) and Dogecoin (DOGE), as their prices plummeted during the market sell-off.
Market Impact
The global cryptocurrency market cap fell by 4.11%, dropping to $3.47 trillion. Despite this, trading volume surged by 114.40%, hitting $352.9 billion as investors reacted to the market’s volatility.
Market experts suggest that the long-awaited altcoin rally could be delayed due to the current market sentiment and uncertain conditions.
Altcoins and Bitcoin Dominance
Bitcoin (BTC) dominance has seen a significant increase in the past 24 hours, reaching 57.90% from 56.86%. This increase indicates a shift in market dynamics, with Bitcoin maintaining a stronger hold on the cryptocurrency market.
The rise in Bitcoin dominance was triggered by a bounce off the 55.26% support level, which acted as a catalyst for Bitcoin’s renewed strength. Generally, a fall in BTC.D signals strength in altcoins, often leading to rallies. However, a surge in dominance indicates capital flowing back into Bitcoin, leaving altcoins struggling to keep up.
If the dominance of Bitcoin continues to rise, altcoins may face additional losses, extending the current bearish outlook.
Largest Liquidation Losses
Ethereum and Dogecoin faced the largest liquidation losses among altcoins during the recent market downturn, according to data from Coinglass.
The two cryptocurrencies saw a combined loss of $350.56 million, with Ethereum accounting for $249.48 million and Dogecoin contributing $101.08 million. These liquidations occurred as the market moved sharply against trader expectations, forcing positions to close.
Long traders were the most affected, losing $213.28 million on Ethereum and $83.13 million on Dogecoin. This highlights a market heavily skewed in favor of bearish sentiment.
A potential recovery would require renewed demand for these assets, possibly driven by large investors (whales) seizing the opportunity to accumulate at lower prices. If such activity materializes, a rebound could occur sooner than anticipated.
