The year 2022 has been one of the most difficult times in the cryptocurrency world. The fluctuating effect of the market has led several investors to incur huge losses with some pulling out of the business. Today, the native coin of Ethereum is reported to have dropped to a two-month low, causing $400M in liquidations.
How Ethereum Slumps
The significant sell-off that occurred today is the result of a double-digit percentage decline in the native coin. On a 24-hour basis, the total value of liquidated holdings is once more increasing and has reached $400 million. This occurs at a time when the whole cryptocurrency market has turned negative, with ETH leading the pack after a brutal 10% daily decline.
Following the eagerly awaited Merge, Ethereum’s price was already in trouble, as it appears Mark Cuban’s prediction that it would be a sell-the-news event has come to pass. When the Merge eventually happened last Thursday, the asset was trading at about $1,600; however, a few hours later, it started to decline sharply.
The bulls suffered greatly during the past 12 hours as Ethereum fell below $1,300 for the first time since mid-July. The coin had been trading for around $1,450 before the start of the weekend. The state of the market as a whole is not much better.
Did Other Coins Experience the Same?
Yesterday, Bitcoin reached a high of just over $20,000, but the leading cryptocurrency has since dropped precipitously and is now struggling to stay below $19,000.
Similarly, the price of Cardano, Polkadot, Shiba Inu, and Polygon has decreased from the larger-cap cryptocurrencies by up to 10%. Some lower- and mid-cap alts see severe losses, including Uniswap, NEAR, Litecoin, and Chainlink, which all display double-digit declines.
On CoinMarketCap, the total value of the cryptocurrency market is falling by $60 billion each day to just over $900 billion. These unfavorable pricing changes occur before this week’s anticipated interest rate increases from the US and EU central banks. Given this increased volatility, it is hardly surprising that daily total liquidations have risen to just about $400 million.
Consequently, in the past 12 hours alone, they are at $300 million. At the same time, more than 120,000 traders have seen their positions destroyed, and BitMEX is currently seeing the single-largest liquidations, totaling $10 million. Thus, we hope for a better market in the next few weeks to recoup investors’ losses. Follow TechGenies for more updates.