Bitcoin dropped below $84,000, correcting after a strong four-day rally of about 13%.
The day before, BTC hit an eight-month high of $87,381, but then the market reversed. Bitcoin is trading around $83,900, losing about 2.7% in a day.
Altcoins decline along with Bitcoin The correction also affected the largest altcoins. Ethereum is trading around $2,685, XRP fell by about 7.5%, and DOGE by 8%.
The sharp move triggered another wave of liquidations. Over the past day, their total volume amounted to about $545 million. Of this amount, approximately $447 million came from long positions. In total, forced closures affected about 126,630 traders.
Pressure intensified from the macroeconomic side An additional factor for cryptocurrencies and other risk assets was the changing situation in traditional markets. The yield on 10-year US Treasury bonds rose to 5.11%, and WTI oil traded above $92.
Strong US business activity data reinforced expectations that interest rates may remain high for longer. Against this backdrop, pressure intensified on both cryptocurrencies and other risk assets.
What this means for crypto traders The past few days clearly demonstrate the volatility of the crypto market: Bitcoin first gained about 13%, then quickly shifted to a correction, accompanied by large liquidations of long positions.
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