Bitcoin (BTC) has led a more prevalent and sustained price crash over the past 24 hours that has dragged more than 97% of altcoins in the top 100 range to unprecedented sell-offs. With the bearish encroachment, data from CoinGlass shows that the market has recorded as much as $162.7 million in total liquidations over the past day.
Bitcoin slipped past the $25,000 support zone and, at the time of writing, the premier digital currency is trading at a spot price of $24,888.49. The breach of the support level it has kept over the past month came after the cryptocurrency shed 4.28% of its price overnight.
While Trust Wallet Token (TWT) remains one of the few cryptocurrencies with a significant uptick among the biggest cryptocurrencies, the liquidation has extended to less capitalized tokens, including Injective (INJ), Sui Network (SUI), and Internet Computer (ICP), among others.
Surprisingly, owing to its woeful performance, Ethereum (ETH) has seen more monetary liquidations, with a total valuation of $60.54 million. Bitcoin’s total monetary liquidation is pegged at $46.30 million, while other altcoins combined recorded a total of $11 million in liquidations.
Two sources of FUD
It is notably unusual for the crypto market to take a sharp retracement in its price trajectory without at least one underlying cause. For the current market bear turn, the caution generated by the testimony of Aaron Kaplan, the CEO of regulated crypto firm Prometheum, might be before the U.S. House committee as it concerns crypto regulations.
With industry insiders calling out Kaplan, the market chose to echo the worry. Additionally, the depegging concerns of the Tether (USDT) stablecoin are also growing by a mile. Bitcoin is particularly embroiled in the Fear, Uncertainty and Doubt (FUD) surrounding Tether as there is a likelihood that the parent firm may sell off its Bitcoin holdings to help the stablecoin regain its peg.
Investors are taking the cautionary path in case these projections become reality.