Solana drops to $110 amid $1 billion in crypto liquidity.
Solana fell more than 20% to trade near $110 as crypto traders saw more than $1 billion in trading positions fall in the last 24 hours.
The SOL plunged as BTC led the crypto market in a bloodbath with a test low of $49k and Ethereum below $2.2k. Solana, which traded at $145 late Sunday, fell sharply to test the $111 price level on Monday.
The decline of SOL and the rest of the crypto market came as investors feared a US recession, which led to a slowdown in global stock markets. The Federal Reserve's interest rate policy is also a major concern, as are geopolitical tensions.
“I'm calling for an emergency cut of 75 basis points in the Fed funds rate, another 75 basis points have been suggested for next month's September meeting – and that's the minimum,” Wharton's Jeremy Siegel said: pic.twitter.com/s4CgWx962Q
— Squawk Box (@SquawkCNBC) August 5, 2024
In the crypto market, the frenzy due to selling pressure from jump trading intensified the bleeding for ETH and other altcoins.
Crypto sees more than $1 billion in liquidity
Hundreds of crypto traders experienced massive liquidity as crypto prices plunged on Monday to see the total market cap drop 17% to $1.9 trillion.
Coinglass Data showed. By early Monday, that total liquidity had jumped more than 400% to $1.1 billion. These were primarily long positions, with more than $962 million used, the data showed, and had high bets on crypto prices.
Amidst the BTC crash and broader market decline, the number of crypto traders who poured in 24 hours exceeded 301,700.
At the time of writing, total liquidity stood at $1.14 billion, with the largest single liquidation order being $27 million in BTC.USD on crypto exchange Huobi.
In particular, short liquidity was only $174 million, $64 million for BTC and $50 million for Ethereum in 24
