- Bitcoin plummets below $50,000, Ethereum down 20% in widespread crypto sell-off.
- Over $1 billion in crypto liquidations in 24 hours, predominantly from long positions.
- Justin Sun denies leverage trading rumors amid market downturn.
The cryptocurrency market has dropped over the last 24 hours and seen a liquidation surge. A drop in major cryptocurrency values, such as Bitcoin and Ethereum, caused cascades of liquidated leveraged positions.
Bitcoin fell below $50,000, while Ethereum fell 20%, bringing the price to $2,324. During the instability, investors and dealers of all sizes liquidated more than $1 billion. Most of these liquidations were for long positions, with Bitcoin and Ethereum suffering the most, showing market volatility.
Liquidation Rumors Against Justin Sun
Amid the market chaos, rumours circulated on social media platforms, particularly X (formerly Twitter), suggesting that Tron founder Justin Sun had suffered substantial losses due to these market conditions.
A tweet from an account fueled these speculations with a considerable following, which claimed that Sun had been “finally liquidated.” However, Sun has publicly refuted these claims, stating that neither he nor his team engages heavily in leveraged trading, which he believes offers little benefit to the broader cryptocurrency sector.
Further, he stressed that his investment strategies are not mainly based on leverage but on support to the broad cryptocurrency industry through staking, running nodes, and helping blockchain projects. He remains committed to things that would be useful for the growth and stability of this crypto sector.
Market Dynamics and Analyst Insights
The latest market sell-off is consistent with broader economic concerns, such as fears of a US recession and confusing messages from the Federal Reserve on interest rates. These economic indications have made many asset classes more volatile, with the technology-heavy Nasdaq suffering significant losses.
Analysts, including Bitcoin critic Peter Schiff, think the market could still see worse days, more so with expected revisions in the U.S. market strategies and the opening trades in the States. Schiff anticipates potential massive retracements in these markets, the Bitcoin ETF sector included, as investors and traders react to the emerging economic climate.
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