Crypto Market Faces Turbulence as Bitcoin Drops Below $59K

A sharp sell-off leaves Bitcoin and other major cryptocurrencies reeling with significant losses.

Cryptocurrencies took a significant hit on Wednesday as Bitcoin (BTC) plummeted below the $59,000 mark, marking its lowest price since August 19. Ethereum's ether (ETH) also suffered a considerable drop, slumping nearly 10% during the day's market rout.

Earlier in the day, Bitcoin had reached a high of $62,700 but rapidly declined, losing 6.5% over the previous 24 hours. It bottomed out at $58,240, sparking concerns among investors. Meanwhile, ether, which had traded as high as $2,700, fell to below $2,500, reflecting a nearly 10% loss.

The sudden downturn in the crypto market wasn't immediately attributed to a specific cause. However, the sell-off led to a significant liquidation of leveraged crypto derivatives positions, totaling $313 million over the past 24 hours, according to data from CoinGlass. ETH traders were particularly hit hard, with over $100 million in liquidations, while BTC traders faced $95 million in losses.

Other major cryptocurrencies followed suit in this downward trend. Binance Coin (BNB) dropped nearly 4%, trading at $528, while Solana (SOL) saw a 7% decline to $146. XRP was down 4%, trading at $0.56. Additionally, Dogecoin (DOGE) and Tron (TRX) also experienced losses, falling 6.5% and 2.25%, respectively, to $0.098 and $0.158.

As the crypto market grapples with this sudden volatility, traders and investors are left to speculate on what might have triggered this broad sell-off and what it could mean for the market's short-term future.

photo source / Blockonome