Bitcoin price has crashed by over 30% in the last seven days, dropping below the $50,000 mark for the second time this year.
Early Monday morning, the price of bitcoin dropped significantly to levels last seen in February earlier this year. The leading cryptocurrency broke the $50,000 support, plummeting to $49,000 before bouncing back above the $50k region. Following the bearish trend, the entire crypto market has been on the red side since last week, liquidating more than $1 billion in leveraged positions within the previous 24 hours.
With major crypto assets bleeding, the entire crypto market capitalization has dropped by more than 17%. According to data from Coinmarketcap, the global crypto market capitalization dropped to $1.76 trillion on Monday morning from the previous $2.15 trillion recorded last week.
Investors Gripped With Tears and Fear
According to crypto liquidations tracker Coinglass, the crypto market has recorded its most significant three-day liquidation this year. Following the sudden crash, the entire crypto market has liquidated over $950 million in long positions within the past 24 hours, with $175 million in shorts also wiped off.
Bitcoin and ether led the liquidation spree, wiping off $324.4 and $308.6, respectively. Solana (SOL) liquidated $45.8 million while XRP and Binance coin (BNB) wiped off $18.1 million.
The bloodbath in the crypto market has also induced fear in the heart of investors, as the Crypto Fear & Greed index is showing the the market is nearing towards extreme fear.
Meanwhile, as investors wonder what could be the reason for the massive crash, Arthur Hayes, founder of the popular crypto trading platform BitMEX, speculated that the market decline may be connected to a massive selling from a whale in trouble.
