- The cryptocurrency market capitalization has fallen below the trillion-dollar mark for the first time in six months.
- Trading firms including Jump Trading and Wintermute have seen large deposits on exchanges.
- Arbitrum also became the target of whales as millions of ARB were sold in the last 24 hours.
The crypto market has witnessed a decline over the past month, and the past 24 hours have contributed to the same. When the FUD surrounding Solana and the FTX hearing injected fear into the market, investors reacted with panic selling. This caused a phenomenon that had not been observed for almost six months.
Crypto Market Falls Below Crucial Level
The total value of the cryptocurrency market fell below the trillion-dollar mark as almost $29 billion was wiped out in the last day. The 2.84% drop in market capitalization brought the combined value of all cryptocurrencies to just over $987 billion.
Total Crypto Market Capitalization
The current value of the cryptocurrency market was so low in March this year and marks a six-month low. Although investor sentiment was one of fear, the crash that occurred in late August injected a strong bearish trend into the market, facing FUD regarding the SOL and FTX bankruptcy hearing.
Beyond traders and investors, many large trading firms also jumped on the bandwagon and dumped millions of dollars worth of crypto assets. According analysis Arkham Intelligence and Lookonchain, companies such as Jump Trading, Abraxas Capital Management and Wintermute Trading have deposited more than $30 million worth of Bitcoin, Ethereum and Arbitrum on various exchanges.
This behavior of the whales added to the bearish impact experienced by the market.
The largest liquidation of long positions in three weeks
The last 24 hours also marked a milestone in the Futures market, where long contracts were liquidated as a result of the crash. According to data from Coinglass, nearly $150 million in long liquidations were observed, which is the highest figure since the mid-August crisis, which resulted in the liquidation of long contracts worth almost $1 billion.
Crypto Market Long Liquidations
This three-week high marks losses for investors that would take some time to recover, considering the current bearish market sentiment.
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