After the October 20 Bitcoin ATH, there was a sharp correction in the cryptocurrency market today. Most altcoins are down 7-15% in price and are currently trying to consolidate. Bitcoin, which gave the first signs of the decline, fell 6% to below $ 58,774, setting a new weekly record. Ethereum, on the other hand, lost 5%. While AAVE and 1Inch were the altcoins that closed the day with more than 5% profit, only SHIB among the top 20 cryptocurrencies had double-digit gains.
What triggered the Bitcoin, Ethereum and Dogecoin drop?
The drastic price correction of October 27 led to the liquidation of over $500 million positions. Considering the market’s strong and safe traders, high liquidation has largely come from long position holders.
While this amount of liquidation is lower than the slump seen in May and June, several cryptocurrencies have breached key support levels, including BTC, ADA, XRP and other major altcoin projects.
Is the Asian market behind the fix?
The main catalyst behind the current correction is estimated to be the Asia Pacific stock market, which previously caused sharp drops in the cryptocurrency market. Market sentiment seems to be moving to crypto as well, and given that Asian traders are currently active, the theory seems correct.
The cryptocurrency market has not experienced such a large correction in the last month. After a historically declining September, the market quickly recovered in October and with Bitcoin exceeding the ATH level, the total market cap reached $2 trillion again. BTC price’s long journey, which started at $45,000 and peaked at $67,000, placed the cryptocurrency with the largest volume in the top spot as a percentage of earnings.
Meanwhile, SHIB, which has joined the top 20 cryptocurrencies, has turned into a meme coin monster that defies market possibilities, increasing 666% in October. It is also noteworthy that it can stand up despite the market in general.