Is the bull trap confirmed? Market cap falls below $1 trillion, and bitcoin sinks after $20,000

  • The cryptocurrency market capitalization has collapsed below $1 trillion after being unable to hold support.
  • More than $300 million has been liquidated due to various developments in the cryptocurrency market.
  • Bitcoin (BTC) fell below $20,000 on negative news in the industry.

The cryptocurrency industry is in turmoil market cap striving for Find support. Many cryptocurrencies have gone down with it, liquidating millions. The recent decline in the market can be attributed to a series of negative news affecting the sector, incl Silvergate shut down and a Lawsuit against KuCoin Regarding the alleged sale of unregistered securities. These events had a significant negative impact on the market.

Market capital collapse after a domestic rally

The market cap has been declining since breaking above the $1.04 trillion resistance level on February 21, breaking below the $945 billion support level on March 9.

The cryptocurrency market has taken a hit recently, as the total market capitalization of cryptocurrencies and Bitcoin (BTC) dropped significantly due to the poor performance of the major currencies after the extremely negative news. exchanges like Coinbase Huobi also experienced a significant drop in value, while lawsuits were filed to A legendary sea monster And KuCoinwhich increases market instability.

Find support after filtering

The leading digital asset, Bitcoin, has seen its price drop below crucial horizontal support levels, which led to the recent market crash. This decline greatly affected the rest of the market, as many other cryptocurrencies are highly dependent on the performance of Bitcoin. In addition to the poor market performance, confidence among investors is low as multiple exchanges take a hit.

Ethereum (ETH) has also seen losses recently due to regulatory concerns. The New York Attorney General’s suggestion that ETH could be considered a security fueled the fire started by SEC Chairman Gensler, leading to fear among investors and a significant drop in prices. This resulted in the liquidation of millions of dollars.

Cryptocurrency liquidation in the last 24 hours.

Cryptocurrency liquidations in the last 24 hours: Coinglass

Over the past 24 hours, there have been more than $370 million in liquidations, with Bitcoin being the most liquidated with $130 million, followed by Ether with $93 million. Almost all liquidation is done from traders with long positions, who had absolutely no justification for opening such positions, as the market seemed to be gaining momentum before reversing.

on the flip side

  • Although long positions saw most of the pain, those who were short also saw losses of nearly $35 million.
  • Despite the recent decline in the Bitcoin price, the cryptocurrency has been at similar price levels in the past and is still up about 20% from its November 2022 lows.

Why should you bother

The recent downtrend in the cryptocurrency market, with both Bitcoin and the total market cap declining, is a development affecting the entire cryptocurrency community.

The increasing amount of liquidations and ongoing lawsuits against major exchanges like KuCoin and banks like Silvergate is causing uncertainty in the market, which leads to instability in the short term.

Read more about the ongoing KuCoin lawsuit and its potential impact on the crypto market:
KuCoin CEO on Silvergate: ‘Our money is safe’

in a sea of ​​red, XRP Stay stable and outperform many other coins. Read more here:
XRP Challenges Crypto Bear Market Amid SEC Updates

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