The bullish narrative of this cycle has been put to a serious test lately as the cryptocurrency sector continues to sink. Its total market capitalization plummeted below $2.7 trillion, while Bitcoin (BTC), Ethereum (ETH), and many other leading digital assets tanked to multi-month lows.

Several hours ago, the primary cryptocurrency collapsed below $77,000 for the first time since November 2024. The bulls, though, managed to stop the freefall, and the price currently stands at around $80,000 (per CoinGeckos data).

BTC Price, Source: CoinGecko For its part, ETH briefly crashed under $1,800, a level last witnessed at the end of 2023. Ripple (XRP), Cardano (ADA), Solana (SOL), and almost every well-known cryptocurrency from the top 100 club are deep in the red, too.

Somewhat expectedly, the latest downtrend had a negative effect on traders who have opened long positions with high leverage. According to CoinGlass, over 330,000 of those were liquidated in the past 24 hours, with the total amount of liquidations equaling $950 million.

BTC trades comprised around $318 million of the figure, Ethereum (ETH) accounted for $250 million, while Solana (SOL) made up roughly $50 million of the share. 

The largest single liquidation order happened on Bybit. It included the BTC/USDT trading pair and cost the affected person a staggering $5.26 million. 

The following days and weeks are expected to bring more volatility to the crypto market, considering the potential negotiations for peace in Ukraine, the upcoming release of the US CPI data, and the Federal Reserves FOMC meeting.