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Crypto Market Plummets: $140B Wiped Out Amidst Sell-Off
1 Dec
Summary
- Bitcoin dropped sharply, falling below $87,000 in a broad market sell-off.
- The crypto market capitalization saw a significant decrease of $140 billion.
- Analysts suggest the decline is a leverage flush-out, not a structural breakdown.
The cryptocurrency market faced a significant downturn on Monday, marked by Bitcoin's sharp drop below the $87,000 level. This broad risk-off move erased an estimated $140 billion from the total crypto market capitalization. Major altcoins like Ethereum, XRP, and Solana also experienced substantial losses, with some falling over 10%.
Analysts noted substantial liquidations, with over $300 million in leveraged longs being wiped out. This has shifted Bitcoin's short-term outlook towards further downside, with potential retests of lower support levels. However, experts suggest this is more of a leverage flush-out than a fundamental breakdown.
Despite the current volatility, some market observers see potential for recovery once excess leverage is cleared. A weakening dollar is seen as a potential liquidity tailwind, which could support Bitcoin accumulation during periods of price uncertainty. The market remains balanced but hesitant, with underlying interest shown in trading volumes.
