In a volatile turn of events, the cryptocurrency market recently experienced a significant drop, causing a wave of liquidations. This happened amidst a widespread crash in 'meme coins' such as Dogecoin, which was particularly hard hit. This shift in the market resulted in a total of $2.02 billion worth of crypto liquidations, affecting over 300,000 traders worldwide.
The 'meme coin' crash was felt most acutely by Dogecoin, which recorded a 30% drop within 24 hours. Other cryptocurrencies, including Bitcoin and Ethereum, also felt the impact, with Bitcoin falling below $50,000 for the first time since March, and Ethereum dropping by 10%. A significant proportion of the liquidations were long positions, with around 91% falling into this category.
This market volatility has been driven by several factors, including fears around inflation and the potential for increased regulation in the cryptocurrency sector. There is also speculation that the recent 'meme coin' craze, which saw a surge in popularity for cryptocurrencies like Dogecoin, may have contributed to the instability.
The impact of 'Saturday Night Live', a popular American television show, on the cryptocurrency market has also been discussed. The host of the show, Elon Musk, is a well-known supporter of cryptocurrencies and has often used his platform to promote them. However, his recent comments during the show, in which he referred to Dogecoin as a 'hustle', have been linked to the sharp drop in its value.
The cryptocurrency market is known for its volatility and this latest crash serves as a reminder of the risks involved. Nonetheless, despite the significant liquidations, the total cryptocurrency market cap still remains above $2 trillion, indicating the enduring appeal and potential of digital currencies.