Why Did the Crypto Market Drop Sharply Today
Mohammedia – The global cryptocurrency market is witnessing a sharp correction today, with the total market cap dropping over 2% in the past 24 hours and Bitcoin slipping below the $110,000 threshold.
One of the main pressures right now is the liquidations of leveraged positions. In the last day, more than $1.2 billion in long bets have been forcibly closed, as falling prices triggered automatic sell orders in margin and futures markets. Many traders were riding on high leverage, so when the storm hit, it cascaded downward quickly.
Another big driver is options expiry. Around $22 billion worth of Bitcoin and Ethereum options contracts are expiring.
These expiry events often increase volatility, because large players try…
