Crypto Market Cap drops below $1 Trillion and liquidates $2B+ in longs

Current State of the Market

2021 has only just begun and in the first 10 days of the year, Bitcoin rallied by over $11,000 to reach a peak of $42,000 per Bitcoin. This led to the cryptocurrency market capitalisation to rise above the much awaited $1 Trillion mark.

After a meteoric rise from the ashes, Bitcoin has seen its first significant pullback this run: -20% from peak to trough so far.

This in turn has induced a drop in the market capitalisation back under $1 Trillion.

Liquidations

This push to the downside has triggered a very large number of liquidations from the long side of derivatives (futures). In fact, on the 10th and 11th of January, over $2,000,000,000 in long positions have been liquidated.

$1 Billion alone has been liquidated on the cryptocurrency exchange Binance.

Altcoins

Alts were not immune to this drop in price, here some stats:

• ETH: -25% (from $1,350 to $1,010)
• XRP: -32% (from $0.369 to $0.252)
• BCH: -30% (from $650 to $450)
• LTC: -33% (from $186 to $124)

Pullbacks in a Bull Market

Looking back to the 2017 bullish cycle, Bitcoin has witnessed multiple drawdowns along the way to the tune of -30/40%.