the global crypto market experienced a notable selloff during Tuesday’s trading session, per CoinMarketCap data. The selling pressure continued today, with the combined market cap dropping 4.9% of its value in the past 24 hours.
The market decline has raised concerns among traders and investors, sparking discussions on the major cause across several online platforms.
Price Performance of Top 5 Digital Currencies
Bitcoin (BTC), the largest cryptocurrency by market capitalization, has shed a substantial amount of its recent gains in trading. At the time of writing, BTC price was down 4.4% in the previous 24 hours to $61,101.
The coin fell from the high of $64,750 recorded on Monday. Despite this, the 24-hour trading volume increased by 55% over the past day, indicating investors’ willingness to accumulate the coin.
Ethereum (ETH), the second-biggest digital asset, is also experiencing a substantial decline in its price. ETH is trading at $2,454 at press time, decreasing by 6.9% in the intraday session.
The trading volume followed differently, surging 56% to $25.6 billion in the last 24 hours. Other leading cryptocurrencies moving downward in the crypto market include Binance Coin (BNB), Solana (SOL), and XRP.
BNB experienced a 5.5% decline in trading at $547.10 in the past day. Within the same time frame, Solana followed the same downward movement, dropping 6.6% of its value to $146.42. Similarly, XRP’s price was down 7.36% to $0.5855.
The Liquidation Figures in 24 hours
Liquidation figures further reinforce the crypto market’s decline in the last 24 hours. According to data provided by CoinGlass, approximately $555 million worth of crypto has been liquidated in the past 24 hours alone.
Long positions account for the major share of liquidated positions ($480 million), while short positions amounted to $74 million. The largest liquidation took place on the Binance exchange, with over $272 million worth of crypto drained from the platform.
OKX and Bybit are in second and third place, with $181 million and $43 million, respectively. Bitcoin recorded the biggest liquidations, with $144.6 million wiped out. $127.8 million from long positions and $16.8 million from short positions.
Ethereum and Solana come in second and third places, respectively. The popular memecoin, Dogecoin (DOGE), also appeared in the top 5.
The Core Reasons Behind the Market Downturn
Per expected analysis, the intensified conflict between Israel and Iran temporarily stopped crypto buying, partly contributing to the price drop. This underscores how volatile cryptocurrencies can be amid broader regional and global escalations.
Market experts fear the ongoing Israeli-Iranian war could push Bitcoin much lower, possibly to the $55,000 level. Experts claim the Middle East geopolitics might steal the limelight for now.
Meanwhile, the US SEC has until October 7 to appeal against a ruling that only some of Ripple’s XRP sales violated securities laws. This uncertainty surrounding the SEC vs Ripple lawsuit appeal is another likely factor dampening the crypto market sentiment.
Furthermore, the spot accumulation of Bitcoin Exchange Traded Funds (ETFs) has slowed down recently. On October 1, these investment instruments recorded outflows totaling $242.6 million, fueling a pessimistic outlook for Bitcoin.
