$500 Million Liquidated As Bitcoin (BTC) Price Tanks 5.5%, What’s Next?

A strong correction has ensued the broader cryptocurrency market dropping by 6% over the last few hours. As of press time, the Bitcoin (BTC) price is down 5.6% and is currently trading at $66,654 with a market cap of $1.311 trillion. The rest of the altcoins space is also bleeding heavily with the top ten altcoins correcting anywhere between 6-10%.

$500 Million Liquidated As Bitcoin (BTC) Price Tanks

As per the data from Coinglass, more than $500 million have been liquidated across the crypto market amid this strong correction. Of these, $414 million liquidations have been in the long positions, and $85 million liquidations in the short positions.

Of these, $66 million have been in Bitcoin liquidations while other altcoins have contributed the rest. In recent observations shared by QCP Capital, notable activity has been witnessed in the options market, with considerable interest observed in selling calls and purchasing puts for both Bitcoin (BTC) and Ethereum (ETH). This trend has exerted downward pressure on spot prices while simultaneously maintaining elevated levels of implied volatility, particularly evident in ETH.

In the case of Ethereum, demand for puts has notably surpassed that of calls in the near-term, resulting in a downside risk reversal skew of -5% for April. This skew indicates a prevailing sentiment toward downside protection in the options market for ETH, reflecting cautious sentiment among traders regarding potential price movements in the near future.

Meme Coins Party Seems to End

There’s been strong selling in the entire meme coin sector that has been in the limelight over the past few weeks. Over the last weekend, the Dogecoin (DOGE) price surged all the way to 22 cents, however, it has dropped by 13% at press time currently trading at $0.1881.

Other meme coins like Shiba Inu (SHIB), Dogwifhat (WIF), and others have also entered a steep correction.

Amidst diminishing speculative fervor in the cryptocurrency realm, the prospect of looser monetary policy in the United States encounters obstacles. Over the last 24 hours, previously favored coins among meme-trading communities, such as Pepe, dogwifhat, and Bonk, saw declines in their values.