Hassan Maishera
TL;DR
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BTC and ETH recorded huge losses on Monday, resulting in $500 million in liquidation for traders.
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The market has slightly bounced back but the broader crypto market is still in the red zone.
BTC Dips Below $41k
Bitcoin, the world’s leading cryptocurrency by market cap, has been underperforming in recent days. BTC lost more than 3% of its value on Monday, dropping to the $40,300 mark for the first time in weeks.
Ether also underperformed and saw its value decline below the $2,200 mark. The poor performance by the two major cryptocurrencies resulted in a market-wide dip, with some coins losing more than 10% of their values over the last 24 hours.
Furthermore, the poor performance saw crypto futures traders lose over $500 million in liquidation positions as steep volatility impacted highly leveraged longs and shorts.
Market analyst Will Clemente believes that corrections shake out 'weak hands' and leverage, allowing for a stronger foundation for eventual moves higher.
The market has started to recover, with BTC now trading above the $41k level once again. BTC is currently trading above $41,500, losing less than 1% of its value in the last seven days.
Meanwhile, Ether is back above the $2,200 mark after rebounding from yesterday’s slump. Meanwhile, the total cryptocurrency market cap has remained at $1.57 trillion, despite losing less than 1% of its value in the last 24 hours.
