(MENAFN- The Arabian Post) Bitcoin experienced one of its sharpest market corrections since 2021, with over $1.6 billion liquidated across the crypto ecosystem in a single day. The cascade of sell-offs led Bitcoin to tumble by more than 10% at its peak, sparking widespread volatility among major cryptocurrencies. Aggressive selling activity on platforms like Coinbase set the stage for the plunge, beginning just an hour before Bitcoin entered critical price zones. These levels triggered mass liquidations of highly leveraged positions, amplifying the market's decline. Analysts have pointed to indicators such as surging funding rates and open interest in derivatives markets as evidence of an overheated market ripe for correction. Ethereum also faced heightened volatility but rebounded with significant buying pressure, signaling continued interest from institutional players. Meanwhile, XRP recorded a sharp 5% drop, with market watchers attributing the decline to concentrated sell-offs, possibly by a major player reducing their holdings. This triggered further liquidations across derivatives platforms, compounding the downward momentum. The overall liquidity in the market remains a challenge despite the high market caps of leading tokens. The thin order books exacerbated price swings, yet also allowed for rapid recoveries as buyers capitalized on the dip. This trend was particularly evident in Bitcoin, which regained key levels shortly after the drop, trading near $96,500 at press time. Similarly, altcoins like Solana and Cardano saw significant trading activity, reflecting investor optimism despite the turbulence.">

MENAFN12122024000152002308ID1108984797