Crypto markets are a sea of red this Monday morning, with Bitcoin slumping 5% in an hour or so and altcoins taking heavy losses. Furthermore, liquidations are in the hundreds of millions over the past few hours.
The crypto market correction is underway as millions in liquidations occurred during the Monday morning Asian trading session.
Crypto Leverage Flushout
There has been $354 million in crypto liquidations over the past 12 hours according to Coinglass. The vast majority were long positions with around $313 million in liquidations.
Furthermore, the total over the past 24 hours is a little over $400 million in liquidations, with 117,770 traders liquidated, as reported by Coinglass.
Bitcoin prices are down 4.4% daily, with the asset falling to $41,926 at the time of writing. BTC slumped almost 5% in less than two hours, hitting an intraday low of $41,783 from an intraday high of $44,000.
The asset appears to have found support at current levels as a seldom-seen “Bart chart” formation forms. The next leg down would take BTC prices to $39,500.
Read more: Top 10 Cryptocurrencies to Invest in December 2023
Crypto trader “RamenPanda” said, “I told you about flash dumps repeatedly. Now dump is completed.”
“It will take a long period of chops for Bitcoin to resume uptrend,” he added before predicting that altcoins would start moving now.
Others have suggested that this was just a leverage flushout. “This was 100% planned and orchestrated move to liquidate high-leveraged gamblers,” said crypto trader “ImNotTheWolf.”
Moreover, there is a busy week ahead on the US economic calendar. Fed meetings and inflation data usually result in higher market volatility which we could already see this week.
No Altseason Yet
Altcoins are taking heavier losses as usual. Total market capitalization has shed around $80 billion or 4% over the past few hours.
Ethereum is down 5% on the day at $2,238 at the time of writing. Other altcoins are suffering heavier losses, however.
XRP has dropped 7% on the day, falling to $0.621 while Solana (SOL) is down 5.7% at $68.90.
Moreover, Cardano (ADA), Polkadot (DOT), Chainlink (LINK), Polygon (MATIC), Shiba Inu (SHIB), and Litecoin have all lost more than 6%.
Very few altcoins are bucking the trend, but among them are Avalanche (AVAX), Immutable (IMX), and Injective (INJ) making gains today.
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