The cryptocurrency market experienced a sharp downturn, with over $2.6 billion in liquidations within 24 hours, as a global liquidity crunch intensified. Bitcoin's price plummeted nearly 20% in a single day, briefly touching the $60,000 mark. This marks a significant decline from its peak of $126,000 in October last year, effectively halving its value.
The downturn is attributed to a broader financial capital shortage, exacerbated by AI capital expenditure cycles shifting from liquidity injection to withdrawal. This has led to increased competition for capital, driving up interest rates and forcing a reassessment of asset allocations. As speculative assets face disproportionate losses, the market struggles with a lack of resistance, highlighting the need for strategic risk management in the current economic climate.
Crypto Market Sees $2.6B Liquidations Amid Global Liquidity Crunch
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