Solana Plummets Over 20% As Cryptocurrency Market Turmoil Continues
Solana (SOL) experienced a sharp decline of more than 20%, trading near $110, as cryptocurrency traders witnessed over $1 billion in trading positions being wiped out in the past 24 hours.
SOL’s price drop was in line with the broader cryptocurrency market downturn, with Bitcoin (BTC) testing lows of $49,000 and Ethereum (ETH) falling below $2,000. Solana had reached a high of $145 on Sunday night before the sudden drop to the $111 price level on Monday.
Market Concerns Triggered by U.S. Recession Fears
The decline in SOL and other cryptocurrencies can be attributed to growing concerns among investors about a potential U.S. recession, which has triggered a global stock market crash. Additionally, apprehensions about the Federal Reserve’s interest rate policy and geopolitical tensions have added to the market volatility.
In addition, worries over Jump Trading’s selling pressure have exacerbated losses for ETH and other altcoins in the cryptocurrency market.
Massive Liquidations Hit Cryptocurrency Traders
On Monday, hundreds of cryptocurrency traders faced significant liquidations as prices plummeted, causing the total market capitalization to drop by 17% to below $1.9 trillion. Early in the day, total liquidations surged over 400%, surpassing $1.1 billion. The majority of these liquidations were long positions, totaling over $962 million in leveraged positions.
Amidst the market turmoil, the number of cryptocurrency traders being liquidated skyrocketed to over 301,700 in just 24 hours. The total liquidation amount now stands at $1.14 billion, with the largest single liquidation order wiping out $27 million in BTC.USD on Huobi exchange.
Interestingly, short liquidations amounted to only $174 million, with $64 million in bearish positions on BTC and $50 million on Ethereum.
