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The crypto market is broadly trading in red on Wednesday with $1.7 billion in liquidations in the past 24 hours, according to CoinGlass, with long traders accounting for the majority of the losses at $1.3 billion.
Bitcoin fell below $100,000 for the first time in more than four months, mirroring the reversal in high-flying tech stocks this week. Shiba Inu likewise fell, reaching a low of $0.00000837 on Tuesday (last seen in January this year) in a three-day slide from the Nov. 2 high of $0.00001074.
The turning point came in October, when a massive wave of liquidations wiped out billions in bullish positions. Since then, traders have stayed on the sidelines. Crypto prices have largely stagnated since, with October’s historically strong seasonality failing to materialize this year.
Among the more recent catalysts for the selling is the Federal Reserve's surprise hawkishness last week, with Chair Jerome Powell and other officials cooling expectations for another interest rate cut in December.
Shiba Inu team reacts to market sell-off
At press time, Shiba Inu was down 2.68% in the last 24 hours to $0.00000889, having added an extra zero to its price tag amid the crypto market drop.
In a new tweet, Shiba Inu team member Lucie weighs in on the market drop, which has resulted in $1.7 billion in liquidations in the last 24 hours. "No one predicted this outcome. I’m proud of those who stayed strong and kept pushing forward."
Lucie added that a positive mindset remains essential: "Thank you for showing the ones who weren’t as mentally prepared that even in this kind of bloodshed, a positive mindset is the only way to move."
The recent market drop has sparked fears that the worst might yet to come, another so-called crypto winter (a prolonged bear market in cryptocurrencies).
However, it is still early to consider this, but the trend so far is shaping up to be net negative, hinting at a pause in the crypto sector’s momentum.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team