$1.68 billion in liquidations hit the crypto market: reasons not to panic

The recent liquidation wave erased $1.68 billion and affected nearly 390,000 traders. Most losses arose from excessive leverage, particularly in long positions, indicating a possible market reset rather than a bearish trend.

Bitcoin’s market cap fell to $2.23 trillion with a 3.04% decrease. However, this decline, which accounts for about 40% of the total market drop, may create a foundation for recovery, as historical patterns suggest rebounds often follow such sell-offs.

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