- Major cryptocurrencies faced significant losses with XRP dropping 12% to $2.17, TRX falling 16.6%, and ADA declining 13.5%.
- Bitcoin retreated from $100,000, trading at $97,000 with a 2% decrease in 24 hours.
- Market-wide liquidations exceeded $1.5 billion, with XRP accounting for $57.44 million in derivatives positions.
- The selloff intensified during U.S. evening hours, affecting major altcoins including Ethereum, Solana, and Dogecoin.
- Analysts suggest this correction represents a temporary consolidation phase in the broader bull market.
Crypto Market Faces Sharp Correction as Bitcoin Retreats from $100K
Cryptocurrency markets experienced a substantial downturn on Monday as Bitcoin’s retreat from the $100,000 mark triggered widespread liquidations across major digital assets. The correction particularly affected recently high-performing cryptocurrencies, leading to over $1.5 billion in liquidated positions according to Coinglass data.
Altcoin Performance and Market Impact
XRP, which had previously recorded a 450% surge last month, saw its value decrease by 12%, dropping to $2.17 from $2.82, based on CoinGecko data. tron (TRX) experienced the most severe decline among major cryptocurrencies, falling 16.6%, while Cardano (ADA) dropped 13.5%, falling below the psychologically significant $1 level.
Bitcoin’s movement below $97,000 sparked a chain reaction across the cryptocurrency market. The leading digital asset recorded $189.18 million in liquidations, while other prominent cryptocurrencies including Ethereum, Solana, and Dogecoin registered substantial losses.
Market Analysis and Future Outlook
A CoinSwitch representative told Decrypt: "This selloff rivals the sharp crash of August 5, underscoring the volatility that continues to dominate crypto markets. However, seasoned investors understand that such pullbacks are often par for the course in a bull market."
Edul Patel, CEO & Co-founder of Mudrex, provided additional context: "When Bitcoin rises, it typically creates a wave of positive sentiment across the market, often lifting altcoins as well. After Bitcoin hit its psychological resistance at $100K, profit booking set in, leading to a consolidation at $96K accompanied by significant liquidations."
The market correction comes amid growing institutional adoption and regulatory developments in the cryptocurrency sector. While short-term volatility persists, market analysts maintain a positive long-term outlook, citing increased mainstream acceptance and evolving regulatory frameworks as supporting factors for continued market growth.
Liquidations, which occur when leveraged trading positions are automatically closed due to price movements, reached significant levels:
- XRP: $57.44 million
- Bitcoin: $189.18 million
- Litecoin: $18 million
Current market data indicates a period of price discovery as investors reassess positions following the recent rally. Historical patterns suggest such corrections often precede new market cycles, particularly during periods of institutional investment growth and regulatory clarity.
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