Crypto Market Slumps 3.5%, Ether, Dogecoin Lead Slide
• Crypto market capitalization dropped 3.5% in the past 24 hours following a decline in U.S. equity markets.
• Ether and dogecoin led the slide among major tokens, falling more than 5%, while bitcoin lost just 1.6%.
• Outside of majors, avalanche (AVAX) fell 7.7% while lido (LDO) dropped over 10%, ending a multi-week bump that saw the token’s value jump 135% in the past month.
The past 24 hours have seen a notable pullback in the crypto market, with market capitalization dropping 3.5% following a decline in U.S. equity markets. Major tokens such as Ether and dogecoin led the slide, falling more than 5%, while bitcoin was relatively more stable, losing just 1.6%. This caused longs, or bets on higher token prices, to be liquidated to the tune of $173 million.
Outside of the major tokens, Avalanche (AVAX) fell 7.7%, and Lido (LDO) dropped over 10%, ending a multi-week bump that had seen its value rise 135% in the past month. A few tokens, however, traded in the green, including those of interoperable blockchain platform Quant (QNT) and layer 1 network Aptos (APT), with both rising over 4%.
The pullback in the crypto market follows weeks of an uptrend fueled by strength in Bitcoin and strong transactional activity among tokens such as SOL and ADA. It is not yet clear whether this pullback is the beginning of a deeper correction, or simply a brief pause as traders take profits after weeks of gains.
Whatever the case may be, investors are advised to remain vigilant and stay informed of the latest market developments. Keeping track of news releases and macroeconomic events could help traders anticipate market movements, allowing them to make more informed decisions. Overall, it is best to trade cautiously while keeping risk management strategies in place.