Markets are looking red on Tuesday morning as Bitcoin is down 7% and Ethereum is down 10%.
The value of the global crypto market has contracted by 8% since yesterday, falling below $2.5 trillion compared to a peak market capitalization of 5% since last week.
According to CoinGecko data, at the time of writing, the price of Bitcoin is $63,142.39 after briefly dropping below the $63,000 mark. It's a rapidly changing landscape for Bitcoin traders. BTC set a new all-time high last week, inching above $73,000.
Ethereum has become worse than Bitcoin.
As of Tuesday morning, Ethereum was trading at $3,230.05. This is a 10% drop from yesterday and less than 20% from last week, the Ethereum community has been encouraging the Denkun update to work on the mainnet.
A stellar fall in the price of Bitcoin and Ethereum means many long positions opened by optimistic traders have been liquidated, according to CoinGlass. More than $500 million worth of long and $100 million worth of short positions in digital asset contracts were canceled in the previous day.
When a trader opens a long position, he is betting that an asset will increase in price within a certain day. Ideally for investors, they would only sell the property if they made some profit and wanted to make a profit. But in extreme cases, the exchange or broker may force the trader to cancel because the asset has seen a significant decline in value.
Meanwhile, they've seen a lot of losses from the note coins that were stealing the show a few weeks ago. That is usually the case for meme coins. While the market's largest assets, such as Bitcoin and Ethereum, see price movement, cryptocurrencies are particularly volatile and can see significant gains and losses.
Solana's meme coins, Dogwiffhat (WFF) and Bonk (BONK), have dropped 22% and 19% respectively over the past day. And FLOKI, an Ethereum-based Shiba Inu-themed meme coin, has lost 20 percent since yesterday.
Solana DEX's JUP token is down 16 percent since Monday, even after Jupiter promised to help Slurf pre-sale buyers who lost $10 million yesterday.
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