Altcoins Plummet as Bitcoin’s $85,000 Test Triggers $550 Million in Liquidations
Meanwhile, the crypto market is experiencing a downturn, with altcoins such as Solana, Cardano, ADA, SUI, and dogecoin leading the drop.
Consequently, the $85,000 level, which had served as a key area of support in recent weeks, was broken, triggering a 1.6% daily drop in bitcoin and a 4% drop in Solana’s SOL.
Moreover, the wild price swings across the board triggered $550 million in liquidations over the past 24 hours on derivatives markets, CoinGlass data shows.
Altcoins Continue to Fall
However, the absence of a spike in trading volume suggests the market is undergoing a “orderly deleveraging,” rather than panic selling, AmberData analysts said.
Therefore, the market is experiencing a correction, with altcoins such as ADA, DOGE, and SUI plunging more than 5%, outpacing bitcoin’s 1.6% daily drop.
Additionally, the $85,000 level had served as a key area of support in recent weeks, with BTC finding buyers there multiple times.
Market Analysis
However, analysts at AmberData, a crypto analytics firm, described this level as “crucial,” and BTC losing it decisively could open the door to a deeper correction toward $80,000.
Meanwhile, the perpetual swaps markets show that funding rates for many altcoins have turned negative, CoinGlass data shows, meaning that short positions are paying long positions a fee to keep their positions open.
Therefore, traders remain cautious and risk-off, with a lack of volume spike on the selloff indicating sellers are exhausted rather than fresh supply emerging.
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