Solana’s price has taken a significant hit, dropping over 20% to trade near $110 as the crypto market experiences a tumultuous period. This decline has resulted in more than $1 billion in trading positions being liquidated within the past 24 hours.
The drop in Solana’s price comes as Bitcoin leads the market in a downward trend, with BTC testing lows of $49k and Ethereum falling below $2.2k. Solana, which was trading at highs of $145 just a few days ago, saw a sharp decline to the $111 price level on Monday.
Investor concerns over a potential US recession, the Federal Reserve’s interest rate policy, and geopolitical tensions have all contributed to the declines in SOL and the wider crypto market. Additionally, selling pressure from Jump Trading has intensified the downward pressure on ETH and other altcoins.
The market turmoil has led to over $1 billion in liquidations, with Coinglass data showing a significant increase in total liquidations to more than $1.1 billion. The majority of these liquidations were long positions, with over $962 million in leveraged positions that had bullish bets on crypto prices.
As a result of the BTC crash and the broader market decline, the number of crypto traders liquidated in a single day surpassed 301,700. The largest single liquidation order was $27 million in BTC.USD on the Huobi exchange. Short liquidations, on the other hand, amounted to $174 million, with $64 million in bearish bets on BTC and $50 million on Ethereum within the past 24 hours.
The total market capitalization of the crypto market dropped by 17% to under $1.9 trillion as a result of the recent price declines. The situation remains volatile, with uncertainties surrounding global market conditions and economic policies continuing to impact the crypto space.
Overall, the recent market movements highlight the ongoing challenges and uncertainties faced by crypto traders and investors. The significant liquidations and price drops serve as a reminder of the risks involved in trading digital assets and the importance of staying informed and cautious in such a volatile market environment.