Crypto news: Bitcoin and altcoins take another quick dip; US$500m liquidated in about an hour

The entire crypto market has taken a sharp fall in the past couple of hours, with some market participants pointing to the liquidation of over-leveraged traders as a contributing factor.

According to the CoinGecko Bitcoin chart, a short time ago BTC lost about US$2,800 in the space of just one hour, with at least $1K of that gone in less than five minutes. Most altcoins have fallen with it, many tumbling harder as they customarily do.

Several top coins quickly saw double-digit losses over 15 per cent in the quick plummet, including Solana (SOL) and Cardano (ADA), which has currently lost the USD two-dollar level its been holding for a good couple of months. Shiba Inu (SHIB) is a notable outlier, bizarrely still pumping away, up about 24 per cent since this time yesterday.

At the time of writing, the market is attempting to recover some of the rapid losses, amid “buy the dip” rallying cries on Twitter.

Bitcoin, having dropped down to US$58,178, has clawed its way back to US$59,117. Ethereum (ETH), meanwhile has just recovered US$4K again.

Coin360.com

Dippage reasons? Some market watchers are pointing to a liquidation event of over-leveraged traders, going too hard on their long positions both in Bitcoin and Ethereum and being exposed by whale action playing the wash-out game.

 

But other analysts say they’ve been anticipating a corrective move regardless of big-bag-holding “whale” games and overzealous, lever-lovers…

As reported by Stockhead several hours ago, Charles Edwards, CEO of investment firm Capriole, had earlier said that “Bitcoin looks incredible here on most metrics, but leverage traders have gone out of control,” adding: “We won’t get sustainable price rises until that happens.”

He’s now calling the dip a “good cleanse”.

Just a bump in the bull-run road? Maybe… much of Crypto Twitter certainly seems to think so.

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