The cryptocurrency market experienced severe volatility, leading to over $1.2 billion in liquidations for over-leveraged traders. Zcash crashed from over $630 to under $300 after a code vulnerability was discovered, prompting backlash from experts like Arthur Hayes, who sold his holdings. Ethereum fell to a 14-month low below $1,650, while Bitcoin dipped to $61,000 before a partial recovery. The altcoin decline contributed to a rise in Bitcoin’s market dominance.
Wild cryptocurrency market moves have intensified, harming over-leveraged traders with higher price fluctuations. The most significant drop came from Zcash, which crashed after community members found a vulnerability in its code.
This prompted intense backlash, including from popular crypto expert Arthur Hayes, who said he had disposed of his entire ZEC position. The token plunged from over $630 to under $300 before recovering some ground.
According to CoinGlass, this volatility caused $100 million worth of ZEC long positions to be liquidated daily. However, ZEC was far from the only asset affected by the market-wide instability.
Ethereum continues to underperform, especially after losing the $2,000 support level earlier this week. It plunged to under $1,650, setting a new 14-month low.
Other altcoins also faced steep declines, with SOL dumping over 7% and ADA down another 16%. Bitcoin dropped to $61,000 before rebounding by almost $2,000.
The altcoin declines have helped Bitcoin’s recovery in terms of market share. Bitcoin’s dominance has risen over 0.5% in a day after falling from 58% to 55.5% in a week.
Data shows more than 255,000 over-leveraged traders were liquidated in the past 24 hours, with a total wipe-out value of $1.21 billion. Long positions accounted for the lion’s share at $935 million.
