The bears have complete control over the cryptocurrency market with $200 billion gone in a day as BTC dumped below $40K.
Bitcoin dropped by more than $5,000 in hours and dumped to its lowest price point in roughly six months. The altcoins are also deep in the red, with Ethereum sliding below $4,000 and the entire market cap losing about $200 billion in a day.
After the past several days of gradually decreasing in value and calming around $42,000, the primary cryptocurrency finally initiated an impressive leg up. It shot up by $1,500 in hours and touched a multi-day high at $43,500.
As the bulls were preparing for another increase, the bears came to play and changed the landscape vigorously. Bitcoin started to lose value massively and dumped to $40,000. However, the worst was yet to come.
In the following hours, BTC lost that coveted resistance line and kept plunging. This time, it plummeted to $38,250, which became the lowest price level since August 5th, 2021.
Somewhat expectedly, this enhanced volatility caused pain for over-leveraged traders, with the liquidations rising above $700 million in a day.