Bitcoin experienced significant volatility on Monday, with a sharp decline to a new monthly low of $64,000. Altcoins followed suit, with many experiencing massive drops, leading to 190,000 traders facing losses in a single day.
After a quiet weekend hovering around $66,000, Bitcoin started the day lackluster but later gained momentum, reaching a peak of $67,200. However, the bulls lost control, leading to a rapid drop of over $3,000 in minutes, hitting its lowest point since May 15. Despite a slight recovery, Bitcoin now rests around $66,000.
Altcoins mirrored Bitcoin’s turmoil, with SHIB and DOGE still down by around 10% despite some recovery. SOL, AVAX, LINK, ADA, and DOT saw drops ranging from 7-9%, while ETH tumbled to $3,450 from $3,330 earlier in the day. Numerous other altcoins like NEAR, UNI, MATIC, WIF, FIL, and FET also faced losses.
The extreme volatility left over-leveraged traders in shambles, with more than 190,000 facing losses in a single day. Liquidated positions surpassed $480 million in value, with the largest liquidation order of $6.44 million occurring on Binance involving the ETH/USDC trading pair, as reported by CoinGlass.
The events of Monday serve as a stark reminder of the unpredictable nature of the cryptocurrency market. Traders must exercise caution, especially when over-leveraging their positions, as the consequences of such volatility can be devastating. As the market continues to fluctuate, it is crucial for traders to adapt their strategies and risk management techniques to mitigate losses and navigate through such turbulent times.