Solana Price Plunges More Than 20% as Cryptocurrency Market Faces Turmoil
Solana plunged more than 20% to trade near $110 as cryptocurrency traders saw more than $1 billion in trading positions wiped out in the past 24 hours.
SOL fell as Bitcoin led the cryptocurrency market through a carnage, with BTC testing lows of $49,000 and Ethereum falling below $22 million. Solana traded as high as $145 on Sunday night before falling sharply on Monday, testing the $111 price level.
The decline in SOL and other cryptocurrency markets comes as investors worry about a U.S. recession, triggering a global stock market crash. The Federal Reserve’s interest rate policy is also a major concern, while geopolitical tensions are also a factor.
“I’m calling for an emergency 75 basis point cut in the federal funds rate and saying that another 75 basis point cut would be the minimum at next month’s September meeting,” Wharton’s Jeremy Siegel said. pic.twitter.com/s4CgWx962Q
— Squawk Box (@SquawkCNBC) August 5, 2024
In the cryptocurrency market, jitters over Jump Trading’s selling pressure exacerbated losses for ETH and other altcoins.
Cryptocurrency Liquidations Exceed $1 Billion
Hundreds of cryptocurrency traders experienced massive liquidations as cryptocurrency prices plummeted on Monday, with the total market capitalization falling 17% to below $1.9 trillion.
Early Monday, total liquidations jumped more than 400% to more than $1.1 billion. These are primarily long positions, with data showing more than $962 million in leveraged positions to bullish cryptocurrency prices.
Amid BTC’s collapse and broader market decline, the number of cryptocurrency traders liquidating surged to over 301,700 in 24 hours.
As of this writing, liquidations total $1.14 billion, with the largest single liquidation order wiping out $27 million of BTC.USD on cryptocurrency exchange Huobi.
It is worth noting that the short liquidation amount in 24 years was only $174 million, of which $64 million was bearish on BTC and $50 million was bearish on Ethereum.
