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Bitcoin Drops $4,000 In a Single Day, the $40,000 Level Emerges As a Key Support Zone

There has been a 5.57 percent drop in the cryptocurrency market capitalization to $1.86 trillion.

Due to investor concerns over Ukraine and Russia’s future, Bitcoin’s 24-hour high price of $44,132.97 has dropped to as low as $40,249.37 in the Asian session. Global markets, especially risk assets, were rattled by increased worries of a Russian invasion of Ukraine, which pushed the price of Bitcoin down to its 50-day moving average.

Ethereum, the second-largest token on the market, plummeted 8.2 percent while Polkadat led the decline in smaller-cap tokens, often known as alt-coins. As President Biden reaffirmed that Russia’s danger of an invasion of Ukraine was “extremely high,” relations between Ukraine and Russia deteriorated further. 

Many of the top 20 altcoins are down 5% or more in the previous 24 hours as they react to Bitcoin’s collapse, which is to be expected. As of this writing, the cryptocurrency market capitalization is down 5.57 percent to $1.86 trillion.

What you need to be aware of

77,429 traders have been liquidated, totaling a net liquidation of $294.50 million in the cryptocurrency market, according to statistics from Coin Glass. There was a total liquidation value of $260.39 million, or 88.42% of the total. Shorts made up the balance of the total. More than half of all liquidations were accounted for by Bitcoin at $128.20 million, or $43.53. A total of $72.34 million was spent on Ethereum, XRP, and Solana, with the remaining $5.37 million and $5.36 million going to other cryptocurrencies.

In the last 24 hours, OKEx was the exchange with the highest liquidations. Of the overall liquidations, the exchange accounted for 37.22 percent, or $109,60,000. In third place was FTX, with a total of $32.40 million, followed by Binance with $76.94 million, and Bybit with $36.83 million.

But in the short-term many traders believe that Bitcoin’s $40,000 support zone is an important make or break moment’ for the currency.